I think it is a good time to re-evaluate this share. It has gone from rs 70 to a high of 265 in the last year… It is now at a price of 170 rs…I think one big reason for its continued undervaluation is that the consolidated value is not being taken into consideration. VLS Securities is a fully owned subsidiary and in my view should fully be counted…
The various financial websites have wildly different book values attributed to it….Moneycontrol is saying its book value is 629rs,Screener.in 806 rs whereas Trendyne is stating 0.5 which implies a value of 360rs!!…I did an analysis today based on last year’s annual report and I came to a value of just over 1000rs (80* percent of this value is in Relaxo Footwear but it also holds considerable mutual funds, bonds and other equities).
In my view a value of 1/6th book value is far too small for a company like this…It is often categorised as a holding company but I do not see it as that…It is not held like holding companies as a vehicle for a larger connected company. (I agree that holding Companies are not necessarily good investments because their promoters aims are NOT always for the price of the share to rise)…But this should be considered more as an investment company.