Porinju Veliyath & Dolly Khanna Forum

Porinju Veliyath on twitter has recommended that investors buy holding companies quoting at steep discount.

"I see few solid holding companies with over 75% discount. They will double in 2017 as the discount would narrow down to 50%, explore!"

Which are these holding companies?

Godrej Industries

Godrej Industries is one stock which is again the holding company for Godrej Properties and have a large holding in Godrej Consumer ProductsBSE 0.79 % and they have Godrej Agrovet. There can be a lot of potential trigger for these companies and it is well managed of course. Anybody will appreciate the quality of the management. So this is one company I am looking forward to and I am holding in PMS.

ET

BBTC (Bombay Burmah Trading Co)
Bengal & Assam Co

This morning I was looking at a couple of stocks. We used to have a lot of fancy for the holding companies earlier. Another six months and nobody will talk about that. But maybe it will come back again and really these companies can have a much higher discounting. The Bombay Burmah Trading Corporation, BBTC.

Another one is the Bengal & Assam Company. These two are the holding companies. I want investors to explore these companies, what they are holding, what is the net worth, what is the worth of these companies and what is the price

I think these companies are available at something like 85-90% discount to their intrinsic value. So there is a chance that this difference can come down to say 50-60%. Even in that case, that is a huge multibagger, these stocks are to be watched. Of course, I am not very happy with the promoters of both the companies but even if they have some problems, they may change going forward .

ET

There are so many holding companies at a steep discount

KALYANI INVESTMENT COMPANY LTD

holds BHARATFORGE, HIKAL& BF UTILITIES shares. Value around 4,000crs. MCAP is around 500crs. Deep value stock

Maharashtra scooters

Holds Bajaj Auto, Bajaj Finance, Bajaj Finserv

Tata investment

All Tata companies like Tata Motors, Tata Chemicals, TCS

Balmer Lawrie Investments Ltd

Vindhya tele

Alembic Ltd

I have talked about Bombay Burmah Trading Corporation (BBTC), Bengal and Assam Company, Vindhya Telelink, Kalyani Investment Company etc. So investors can look at these companies and sometime when market goes into panic and such companies are trading at 70-80 percent or 90 percent discount to the net asset value ( NAV ), it will be a good opportunity. Those discounts are going to shrink and reward investors in this year.

Read more at: http://www.moneycontrol.com/news/market ... 57661.html

List of holding company stocks

Name Stocks held in CMP (Rs) YOY Gain (%)

Bengal and Assam Company JK Lakshmi, JK Tyre 1179 165
STEL Holdings CESC, Philip Carbon, RPG Life Sciences, Saregama 65 138
Florence Investech JK Lakshmi Cement, JK Tyre, JK Paper, Bengal & Assam, Umang Dairies 670 91
Kama Holdings SRF 2487 91
Rajapalayam Mills Ramco Cements, Ramco Industries 629 77
McDowell Holding United Breweries, Mangalore Chem 44 74
Balmer Lawrie Investment Balmer Lawrie 414 47
Maharashtra Scooters Bajaj Auto, Bajaj Finservce, Bajaj Finance 1665 43
Summit Securities Ceat, KEC Intl, Zensar 419 42
Bombay Burmah Trading Corporation (BBTC) Britannia, 565 39
Kalyani Investment Bharat Forge, BF Utilities 1324 35
Bajaj Holdings Bajaj Auto, Bajaj Finserv 1930 32
Godrej Industries Godrej Agrovet, Astec Lifescieces 431 24
Nalwa Sons Investment JSW Steel, Jindal Saw, Jindal Energy 791 23
Tata Investment Corp All Tata Cos + Blue Chips from all sectors 576 15
Vindhya Telelink Birla Corp, Birla Cable, Universal Cable 680 (6)
Williamson Magor Everready Industries, McLeod Russel, McNally Bharat Engg, Kilburn Engg 58 (11)
Alembic Ltd Alembic Pharma 36 (11)

Porinju recommended Bombay Burmah in May 2015

Porinju first recommended Bombay Burmah in May 2015 on the logic that it is quoting at a discount to its investment in Britannia. The recommendation has worked out well with the stock notching up gains of 35% since then.

Source: RJ Stocks

Bombay Burmah (BBTC) is up 6.87%. Kalyani Investment is up 7.60%.