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The real value of One stock that is traded under 20 rupees is more than 1,00,000 rupees.

           In this article the name of one stock or company that you may never hear is disclosed. This type of case is rare and extra-ordinary. Let's see the case.


Elcid investment ltd.

            ELCID Investments Ltd is the company that is listed in Bombay Stock Exchange or BSE. And its case is really extraordinary. Elcid investments ltd has 2.95% stake of Asian Paints that is the market leading company of paint in india. If you watch its market capitalization then it is around about 1,50,000 crore rupees. It have 2.95% stake of asian paint and the value of the stake is about 8,100 crore rupees. Besides asian paint elcid investments ltd has other different stakes. The company has a good profit growth. In FY-2016 the profit of the company was 24 crore rupees and in financial year 2017 the profit was 31 crore rupees. The company has the reserve and surplus of 176 crore rupees. 


                   The company has no debt. It means it is a debt free company. You can see that the company has 2.95% stake of asian paints and also other stake. It has a good profit of 30 crore rupees and it has about 180 crore  rupees cash reserve. And upon all these it isa debt free company. The company also gives 10 rupees/share dividend. If you watch its market cap then you become amaze. And the market capitalization of the company is about only 28 lakh rupees. The price of one share is 14 rupees. And the number of total shares is 0.02 crore.


          Now a look of its share holding pattern. Promoters have the 74.88% stake of elcid investments ltd. And retail investors have the rest of the stake of the company (25.12 %). And  the number of retail investors is only 216. It means they have the 25% stake or 0.02 crore shares. When you calculate its valuation then depending on asian paint's 2.95% stake the value of one share should be more than 2 lakh rupees. It is calculated only based on asian paint's stake. Elcid has also other investments. They have also profit, cash reservation etc that is not calculated yet. Then how it is possible ? The price of the share that should be 2 lakh rupees is traded under 20 rupees. 


Elcid investments ltd


             Actually shareholders of elcid investments ltd know the real value of its each and every stock. So they don't want to sell it under 20 rupees. Its stock was traded for last time in 09 august 2018 in BSE. And its stock traded only for 18-19 times since last 10 years. As all of the shareholders know the real value of it they don't sell the elcid stock. So there isno seller in bse stock exchange. It gave 15 rupees/share in 2018. In 2018 promoters of elcid wanted to delist the company. For this promoters gave proposal to current shareholders to sell the stock. And they decided its each share's price 11455 rupees. And then retail investors didn't sell shares. For this the plan of delist was failed. Then SEBI released a new rule of maximum 75% stake for promoters. 


               For this they sold their 4% stake because promoters had more than 75% stake of company. So they brought offer for sale at 5000 rupees. And investors bought the stock. But the investors who bought it in 5000 rupees face problems. Because shares are traded under 20 rupees but they bought it in 5000 rupees. They bought it in 5000 rulees thinking that one day it would obviously touch its real value. But it never happens. For this many investors went to supreme court. They appealed the court to solve the rare and extra ordinary case by call auction. Market regulator sebi don't notice it as well. Here one problem remains. If any shareholder mistakenly sell the shares then he/she have to face huge problem. Because the shares are traded under 20 rupees where its real value is about 2 lakh rupees.  


                        If you have any query related to ELCID Investments Ltd please comment below so that the topic can be covered.


Best wishes to invest.



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