Thursday, April 15, 2010

A few cheap stocks

Competent Automobiles Co ltd

Competent Automobiles Co. Ltd. is an India-based company engaged in the trading and servicing of vehicles. The Company operates in two business segments: showroom, and services and spares. The showroom segment includes the purchase and sales of new Maruti Suzuki India Ltd. vehicles. The services and spares segment includes servicing and spares parts sale of Maruti Suzuki India Ltd.

The market cap is around 30 crores and has 16 crores in cash (net current assets minus long term liabilities) so essentially it is trading at 14 crores. the company pays direct taxes of around 30 percent of the profits. The company has been consistently generating cash flow and the avg cash flow for the past five years has been around 5 crores and this year the company has generated free cash flow (operating cash flow minus capex) of around 5 crores. So one get the business at 2-3 times free cash flow. The promoters hold around 70% of the total shares outstanding. however one cause of concern is that the company has 16 crores of contingent liablities which are letter of credit obtained from banks.

Majestic Auto Ltd

Majestic auto holds 16 lacs shares of Hero Honda motors ltd, valued at 300 cr whereas its own market cap is around 95 crores and apart from this the company has net fixed assets of 65 crores and liabilities of around 36crore. the market cap of the company is 30 percent of its investment in shares of Hero Honda motors ltd.

BNK capital markets

The company provides brokerage services in financial sectors, capital markets and commodities exchanges to individuals, corporate houses and high net worth investors. It has a market cap of 30 crores while the value of its investments in shares of CESC and KEC International is around 140 crores. Also it has net current assets of 25 crores and liabilities of 16 crores.

1 comment:

Vikas Modi said...

Add to list is HB portfolio Ltd.

It is compelling value buy at current has total investment Stock(185) + MF(10 ) + Unquoted(39) = 234 crores. and company is also having Net Current Asset around 47 crores (including 14cr cash) on consolidated balance sheet . So on market cap of 60, we are getting company ,which has investment 234 + Net Current Asset 47 = 271 crores and fixed asset extra.

I had viewed analysis of this stock from blog