CEAT, ZENSAR, KEC, RPGLIFE’S holding company Summit Securities trading at 88% Discount to its quoted holdings in group companies
RPG – Harsh Goenka group is fast growing business group in India. its presence in Tyres ( CEAT), Information Technology ( ZENSAR), Power & Transmission (KEC) , Pharma ( RPG Lifesciencea), Hospitality ( Spencer international hotels) doing very well in all sectors from couple of years
About Summit Securities :
Summit securities is a holding company of RPG –Harsh goenka Group. It created in 2009 by amalgamation of group various investment companies CHI Investments, Summit Sec, Octave Investments, Brabourne Ent and RPG Itochu Finance
At that time CHI investments. Summit securities,octav investments,Brabourne Ent are pure quoted holding companies of group shres with market cap around 600 cr merged with un quoted company of RPG Itachu Finance which holds 50% stake in spencer international hotels.( Spencer Hotels has three five star hotel properties in Chennai, Bangalore and Ooty. All of them are managed by the Indian Hotels Co. Ltd, a Tata group firm, which runs hotels under the Taj brand. ) valued 600cr . The valuations were carried out by auditing firm Grant Thornton.
Summit securities holds below quoted shares along with its 100% subsidiary Instant Holdings
Company name Qty mkt price Value (in Cr)
CEAT 12469937 1038 1294
ZENSAR TECH 8192495 1092 895
KEC INTL 44307003 150 666
RPG LIFE 4501767 300 135
HARR. MAL. 2353350 60 15
STEL 2353350 36 9
SAREGAMA 253444 342 9
total quoted holding value 3023 CRORES
Today quoted holdings value 3000+ crore and un quoted hotels property value 500cr total 3500 crore liquid asset company available at market cap of 350cr ( cmp 326 * 1.09 cr total shares) means 90% discount to actual value and 88% discount to its quoted holdings.
Pros : > Market value of quoted investments 3023 Cr is morethan its market cap. of 350 cr. trading at 88% discount to quoted holdings
Company is virtually debit free
Trading at 0.7 times to its book value
Company has good profit growth of 49% in last 5 yrs
Company increased its stake in CEAT,ZENSAR,KEC with dividend income of group companies in last 5 years.
Promoter holding 73% with out any pledge.
Cons : Though company not paying dividend
Compare with other Reputed Leading holding companies :
Company holdings value market cap Discount
JSW holdings 1820 1093 40%
Bengal & 1780 464 66%
Pilani Investments 4900 1070 78%
kalyani 3196 681 79%
Summit 3043 358 88%
Conclusion : Summit securities available at attractive valuations compare to other reputed holding companies trading between 40 – 80% discount to its quoted holdings valuations . but summit securities available at attractive valuation of 88% discount
Disc: i am accumulation shares from last 1 year, holds 2100 shares and still accumulating.