Okay, when you mentioned that they have a 4600cr market capitalization and 3820cr in cash, this statement would have made them undervalued if it were true.
According to the best of my understanding after looking at the annual report, they have 22.50 cr in cash, and the remaining 3797.5 cr is invested in different mutual funds and bonds. This is definitely a good thing, but if they have such a significant amount of money invested, it must be yielding them a good return. However, if we look at the last 10 years’ data, we can see that in only one year, they have sold more investments than bought, so I really don’t know when these investments will become profitable for them and generate other sources of income.
This can never be a bad thing; the only problem is the time horizon and management decisions to actually make money on these investments and let those returns show up in their income statement so that it actually makes sense.
But its a good finding nonetheless and thank you for sharing this:)
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