Rs.$£ Anmol Sekhri Consultants Pvt Ltd


Cheviot Ltd - A Fair Valuation?

Outlook : Reasonably Good as per Annual Report 2012

CMP 307.30
Equity Rs. 451.48 L
Dividend Rs 13/- Pre Share
Reserves Rs. 28714.16 L
Promoter Holding A sound 75%
Long Term Borrowings Rs 55 L
Short Term Borrowings Rs 1410 L
Non Current Investments Rs. 10940.89 L
Current Investments Rs. 2498.99 L
Year 2012 2011
Interest Income Rs. 354.41 L Rs. 260.82 L
Dividend Income Rs. 30.86 L Rs. 20.66 L
Year 2012 2011 2010 2009 2008
Annual EPS 63.99 63.92 36.38 48.75 50.58
Topline (Rs. Cr) 295.05 308.62 176.14 179.70 156.86

As of March 2012:

Total of Investments ≅ 110 Crores ( Non Current )
+ 25 Crores ( Current )
Total 135 Crores ≅ Rs. 300/- Per Share
Estimated addition upto July 2012 ≅ Rs 20/- Per Share
Estimated Total of Investments ≅ Rs 320/- Per Share

[ Have ignored FD’s / Cash in Hand / Long term / Short Term Borrowings (Rs. 55 L) ]

Out of a profit of above Rs 39 Crores only about Rs 4 Crores is dividend + interest which means 90% profit is out of business. Hence EPS out of business is almost Rs 57/- per share.
How should such a company be valued by the market?
Or is Rs 307/- Per Share a reasonable price?
Please do send your comments to anmol@sekhriconsultants.com
Note:
  1. This is not a buy/sell/hold recommendation. The purpose is purely academic.
  2. We hold shares in the company.
  3. All data is from the Annual Report. We have rounded off several figures.

For more details about the company and its business please refer to their Annual Report also available on BSE website.