Dear Members,
Whats the deal with investment companies? Is investing in them a good idea? They pay good dividends. And they hold very good chunk of shares of good companies too. For instance, Tata Investment Corpn, Bajaj Holdings, JSW holdings, MH Scooters etc hold good quality shares in great quantity. What’s the play here? Inviting y’all valuable opinion.
| Company | Kama Holdings | Bajaj Holding and Investment Ltd | Bengal & Assam Company Ltd | ||
| Stock PE | 7.65 | 10.8 | 3.69 | ||
| PBV | 1.23 | 1.06 | 0.46 | ||
| RoCE | 24.7 | 11.6 | 15 | ||
| Debt to Equity | 0.92 | 0 | 1.31 | ||
| Investee Company | |||||
| Company | SRF Limited | Bajaj Auto Ltd | JK Tyre & Industries Ltd | ||
| Stock PE | 32.8 | 25.3 | 11.1 | ||
| PBV | 5.72 | 4.51 | 1.23 | ||
| RoCE | 18.4 | 25.4 | 13.2 | ||
| Debt to Equity | 0.44 | 0 | 1.5 |
Even I found that they are undervalued than their respective investee company.