Balmer Lawrie - a great opportunity to invest in a Navratna

Stock Opportunities
25

Hi, I have a question for the members on this board.

At CMP, does Balmer Lawrie look like a better investment than Balmer Lawrie Investments?

dr.vikas

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26

There is always a holding co discount
This varies from time to time. Just look at share holding and you will be able to figure out.
When there was zero LTCG you could switch from BALMER TO BLIL and other way. Now it may not make sense.

27

A good read about their plans https://www.balmerlawrie.com/storage/files/30-34-1184-corp-report-sajal-balmer-lawrie.pdf

3 Likes
28

Thanks a lot for sharing.
On paper looks a very well diversified business with many growth triggers, but need to look out for the implementation.
Being a PSU, will always be valued less.
Can be a good dividend play with moderate price appreciation.

No investments as of now.

dr.vikas

29

so I ran a chatgpt on this

The current market price (CMP) of Balmer Lawrie Investments Ltd. is approximately ₹66.49 as of February 21, 2025​

There was a stock split on August 9, 2024, where the face value of shares was reduced from ₹10 to ₹1​

. This means that historical dividend figures need to be adjusted for comparison.

For FY 2023-24, the company declared a **dividend of ₹3.8 per share (post-split adjustment)**​

Net Dividend Yield Calculation (Post-Tax)

If you invest ₹100,000 at CMP ₹66.49, you can buy 1,504 shares.

  • Gross Dividend: ₹3.8 × 1,504 = ₹5,715.2
  • Tax (Assuming 10% DDT on dividends above ₹5,000) = 10% of ₹5,715.2 = ₹571.52
  • Net Dividend Received: ₹5,143.68
  • Net Dividend Yield: (₹5,143.68 / ₹100,000) × 100 = 5.14% (post-tax)

This means that if you invest ₹1 lakh purely for dividends, your net cash return after tax would be ~5.14% annually, assuming similar dividend payout trends continue.

for example, dividend yield appears better than vedanta.

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30

yes, there are some ratios that you can look at too …

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And this time i refer to actual company and not the holding company. ROCE and ROE seems to be descent, company has not made loss in last 157 years of operations. Very diversified and doing capex now in its core sectors. So a dividend protection with a possible upside.

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