GSFC - Undervalued cash generating machine?

Stock Opportunities Untested - but worth a good look
1

Hi everyone,
I recently came across GSFC and am quite dazzled by its current market cap.

Here are my few observations about the company :

  1. Total investments in other companies stand at ~5000 Cr.
    Holds 19.8% of GNFC (Value: 1844 Cr at current Market cap of GNFC).
    Holds 6.82% of Gujarat gas(Value : 2250 Cr at current Market cap of Gujarat Gas)
    Other investments would be easily valued at over 1000 Cr currently.

  2. Net working capital is ~ 3000 Cr.

  3. Earning Yield is ~10% considering 5 years Average PAT

Currently, the company is valued at around 6682 Cr Market Cap, which is quite surprising considering that the Book value is coming to about 8000 Cr easily(we are not even considering the Earning Yield here).

Would love to hear other’s opinions regarding the company.

Disc: Invested, accounts for ~5% of my portfolio. Considering increasing holding to 8% in the upcoming week.

[PS. I made this thread since I couldn’t find any other active GSFC thread]

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2

Hi Aditya…good amount of FCF…but 21% decrease in PAT yoy and 30% decrease in eps yoy is a concern…

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