Thread by @caswapnilkabra

Have you ever heard of a listed company whose market price per share is Rs.13 and fair value per share is above Rs.1 lakh?
In this thread I am going to discuss about the curious case of Elcid Investments Limited.

#investing #investors

1. Elcid Investments Limited’s last traded share price was Rs.13.38 on 20th October 2020 and it has not been traded ever since. That makes one thing clear; this is an extremely illiquid counter.

2. But, before you write off this nano cap company (market cap of only Rs.27 lakh) as a penny stock, let me tell you an interesting fact. It is the holding company of Mr. Arvind Vakil and his family, one of the founders of @asianpaints .

3. The promoters own 74.88% shares (1.5 lakh shares) and balance are held by public.

4. Let us now talk about the business of the co. The co, as the name suggests is an investment co. It has only dividend income from investments.

5. And mind you, it has no ordinary investments. It holds 2.95% stake in Asian Paints which alone translates to Rs.6300 crores considering today’s price of Asian Paints.

6. Elcid has two more subsidiaries: Murahar Investments & Trading Company Limited and Suptaswar Investments & Trading Company Limited.

7. Another interesting fact is that these subsidiaries too hold 1.28% stake in Asian Paints which translates to 4.23% of Asian Paints or Rs.9000 crores. That is a whopping sum!

8. That is not it. The company has investments in some of the large cap blue chips like RIL, SBI, ITC and also in the unlisted companies like Paytm.

9. You won’t be able to buy the shares of this company even though it is listed. The basic reason is the difference between its market price and intrinsic value, which is huge. Hence, it is very illiquid.

10. The only way to buy is off the market where it may be bought at a high price of even above Rs.1 lakh per share.

11. 3A Capital Services, which holds 5.5% in Elcid Investments requested Bombay High Court for getting the fair price of the company discovered but alas! SEBI has not yet responded. The only way out here seems to delist the company by requesting the promoters.

@gvkreddi, @Dinesh_Sairam have you heard of this company?