Available Finance: A Detailed Overview
Available Finance is a financial services company based in India, operating under the flagship of the Agarwal Group. Founded in 1993, it offers various financial products and services to individuals and businesses. Here’s a breakdown of the company:
Company Overview:
- Founded: 1993
- Headquarters: Indore, Madhya Pradesh, India
- Parent organization: Agarwal Group
- Subsidiary: Available Finance Ltd (Asset Management Arm)
- Services: Money lending, share trading, investment opportunities
Key Information:
Available Finance holds 33% in Agarwal Coal Corporation Ltd and 40% Agarwal Fuel Corporation Ltd.
Agarwal Coal Corporation India is one of the largest importers of coal in India. They import high quality coal from Indonesia and South Africa. The company is part of the Agarwal Group, a business conglomerate with a diverse portfolio that includes sectors like coal & iron ore trade, finance, logistics, renewable energy, education, publication, manufacturing, and more.
Latest Care Report for Agarwal Coal Corporation Ltd : https://www.careratings.com/upload/CompanyFiles/PR/08032023061610_Agarwal_Coal_Corporation_Private_Limited.pdf
Agarwal Fuel Corporation Ltd (AFCPL) is a private company incorporated in 1980 and based in Indore, Madhya Pradesh, India. It is part of the Agarwal Group, a diversified business conglomerate with interests in coal trading, transport, education, financing, construction, cold storage, warehousing, and wind power generation.
Latest Care Report : https://www.careratings.com/upload/CompanyFiles/PR/08032023061624_Agarwal_Fuel_Corporation_Private_Limited.pdf
Investment Thesis
Available Finance presents a potential value play based on its discounted share price compared to the estimated value of its subsidiary holdings.
Key Points:
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Subsidiary valuations:
- Agarwal Coal Corporation earns ~600 Cr annually and could be valued at ~12,000 Cr based on a 20x multiple (similar to peers like Anmol India).
- Agarwal Fuel Corporation earns ~70 Cr annually and could be valued at ~1400 Cr with a 20x multiple.
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Available Finance holdings:
- Owns 33% of Agarwal Coal Corporation, implying a potential value of ~4000 Cr.
- Owns 40% of Agarwal Fuel Corporation, implying a potential value of ~560 Cr.
- Combined potential value: ~4560 Cr.
- Discounted trading: Available Finance currently trades at ~230 Cr, representing a significant discount (75% from book value and 95% from potential holding value).
- Holding company discount: While holding companies often trade at a discount, the current level seems substantial.
Notes
Promoter recently bought 5% stake from open market.
Risk
As neither holding company is publicly traded, timely access to business updates may be limited.
Disc. Invested.