2016 April

Is VLS Finance really a deep value stock?

Posted by | Food for thought, Stocks | No Comments

VLS Finance is a Delhi-based listed company which holds big chunks in some other listed companies like Relaxo Footwear, Ambika Cotton, Accelya Kale and many others, having a combined market value of Rs 950+ Cr. (as on 18th April 2016)
The market cap of VLS Finance, on the other hand is just Rs 150 Cr. which implies one is getting a dollar for 15 cents – a mouth-watering deal for any ‘Value Investor’?
Before we jump to any conclusion regarding the merit of this investment opportunity, let us have a look at how has the situation been historically and how has VLS’ marketcap moved with respect to the change in market value of its investments.
VLS doesn’t seem to have any major operational business of its own and primarily act only as an investment vehicle for its promoter, so

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