March 27, 2017

Bengal & Assam Company Ltd Stock Pick

NBFC BUY
Bengal & Assam Company Ltd is a holding company of the JK Group of compa- BENG.IN
nies, which holds investments in various group entities. It has holdings in companies CMP: Rs 1,709

like JK Tyre & Industries, JK Lakshmi Cement Ltd and J.K. Paper Ltd.
Price target: Rs 2,265
Upside: 33% +
No of Shares Current Value of
Name of Quoted Equities In Crores CMP Investments In Rs Cr
(91-22) 3028-4703
JK Tyres & Industries 5.51 135 742
uljkresearch@uljk.in
JK Lakshmi Cement 2.79 433 1,208
JK Paper Ltd 3.64 95 345 ULJK Financial Services Private Limited
JK Agri Genetics Ltd 0.08 590 47
Umang Dairies Ltd 0.99 74 74
Total 2,416 Market Data
Mutual Funds 41
Market Cap. (Rs Cr) 1484
Total value of Quoted Investments 2,457
Outstanding Shares (Mn) 8.68
52 Week High / Low ( Rs) 1940 / 450
Market Cap 1483
Avg. Weekly Volume 9175
Discount to Investment Holdings 40%
Valued at 20% discount to Investments 1,966 Face Value 10
Equity Base 8.68
Face value 10 Shareholding %

Promoter 73.96
No Of Shares In Crores 0.868
CMP ( Rs / Share) 1709 India Public/ Others 26.04
Implied Share Price 2,265
% Upside 33%

Sensex Vs Stock

Facts and Figures of the Underlying Investments:

JK Lakshmi Cement Ltd: JK Lakshmi Cement Ltd is one of the leading cement play-
ers with a manufacturing capacity of ~10 Mn Tons p.a. The company has its plants at
Rajasthan, Chhattisgarh. It also has a grinding unit at Haryana and Gujarat to cater to
the local markets. For FY16 the company reported a revenues of Rs 2,635 cr , how-
ever due to slow down and lower realizations it reported a lower PAT of Rs 15 cr.
With major capex getting over the prospects of JK Lakshmi Cement remain bright in
the long run.

Valuations & Outlook: Bengal & Assam Company holds investments worth Rs 2457
cr in various JK Group companies and MFs. While the market cap of the company
currently is at Rs 1622 cr, which is ~40% discounts to its holding value. With cement Please refer to the important disclo-
cycle now likely to pick up the investments in JK Lakshmi holds immense value to the sures and analyst certifications at the
holding company. If we assign a 20% discount to the holdings, then the implied mar- end of the document
ket cap works out to Rs 1966 cr, which implies per share fair value of Rs 2265, imply-
ing 33% upside to the current price of Rs 1709. Hence we recommend BUY on the
stock.
Source: Company, ULJK Research

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Research Desk Tel: 022 - 3028 4703

Institutional Sales Desk Tel: 022 - 3028 4711

Disclosure Appendix
ULJK Financial Services Pvt Ltd: (Time range 12 months)
BUY: Returns>20%; ACCUMULATE: 5%<Returns<20% ; HOLD: -5%<Returns<5%, REDUCE -20%<Returns<-5%
and SELL: Returns<-20%

Analyst(s) holding in the Stock : Nil

Director(s) holding in the Stock : Yes

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