Looks like the core business lines (networking products & ems) ended up with negative margins (Per the Dec 16 financial statements) due to severe competition (including Chinese dumping) and the company has during this 3rd quarter classified them as discontinued operations, pushing them behind the scene into two 100% owned subsidiaries. My guess is that these businesses will wind down.
With the NBFC license application and most of its assets being good quality current investments and cash, the company can get a head start in its new LOB. At a book value of Rs 138/- (as at 31 March 2016; Approx 148/- now) with most of the reserves being free reserves and in a low Price/BV, the stock looks attractive inspite of negligible/negative earnings this financial year.
Repute Auditors and no increase in contingents between 03/15 & 03/16 adds further confidence.
No investments yet but I plan to enter.