Shankar Nath Sir, Thank You for bringing such topics and sharing the knowledge amongst us. You provide knowledge like no other Finance CZcamsr. Thank You.
Great to hear! There's always something to learn. About 80% of the video topics I make, I have not much idea about .. and the research/scripting really cements my understanding and it is also bettering my own investing approach
Thank you! Please try Infoedge India and see for yourself. Prima facie, it didnt fit into the same framework as Infoedge has a running business of its own in Naukri, 99acres & Jeevansaathi while Tata Investment Corp. is a pure holding company.
One of the most difficult to analyse & monitor type of shares are Holding Companies. But, if analysed correctly, these also happen to be the most rewarding.
Most welcome. Well, it's a bit like politics and just like there are no permanent friends and permanent enemies -- there's never an "always buy" or "always avoid" situation in investing, metaphorically speaking. May I request you to watch this video again; there were multiple scenarios discussed here itself incl. a) level of discount, b) prospects of underlying investments, c) operations of operating holding companies and d) presence of a catalyst.
Thank you so much. I have a question. As discussed in the video, the PE ratio is insignificant in pure holding companies. What about companies like Reliance or HDFC, which have their own businesses and a medium to large controllable stake in many companies? Is the PE ratio valid in such cases
In case of operating holding companies (Reliance, HDFC, Mahindra & Mahindra etc.), a split needs to be made on the value of operating business and value of subsidiaries. This way the real PE ratio can be figured out
Thank you for a very informative video. In fact, I haven’t heard about this topic ever before. Request if you could share some more information on this topic so as to understand the investment methodology.
@@shankarnath welcome sir it's honour to had a reply from you sir I admire you when it's finance really all your videos are relatable with middle class and your knowledge is no words keep doing great I have listen to many finance influencer by no one can match you sir 😊
Holding investment company (e.g. Tata Investment Corp) vs. Promoter Holding company (e.g. Tata Sons) are different. Most holdings companies are Promoter company of the conglomerate. Some are listed but many are private (strange that privately held company can hold the majority stake in public companies). As you have said, the Promoter company is unlikely to sell its holdings unless it wants to float another company!! Only a few holding companies' returns are better than Nifty returns over the long term.
Bajaj holdings & Kama holdings are core investment company & Tata investment corporation is a pure investment company. Waiting for detailed video on types of NBFC companies in India 😊
No, I haven't yet .. but I will. In my view, Infoedge comes out more as a spawner (incubator/grower of businesses) rather than a classical holding company (whose job is just to invest & hold shares)
@@shankarnath Given that nature of infoedge, won't there be a higher chance of the held companies growing faster and hence also the share price? A VC approach to holding if you will
@@1995Clint Apologies, I don't have an answer as I haven't analysed InfoEdge, Zomato or PBFintech. May I circle back on this comment when I get around to it.
@@shankarnath I did not find standalone buisness of AB capital (even in this investor presentation) Every buisness is run in some subsidiary. Final results are always consolidated. It's important question because at the time of IPO of AMC buisness, AB capital shareholders didn't get anything. If in future, they list every subsidiary will we get shares? And what will be the buisness of Standalone.
@@RakeshSharma-ji4rf 1. In that case, this is a pure holding company. The FY23 revenue (standalone) was 218 crores with a bulk of it as dividend income. 2. In FY22, AB Capital sold 2,850,880 equity shares (FV of 5 rupees) of ABSL AMC Ltd at 712 rupees a share. This was captured as income by ABSL in their P&L statement leading to a pre-tax gain of 196 crores.
This year watch out for Sundaram HOLDING. Broken out after such a long consolidation. Rk damani holds 1.88 ℅Stake in it. Something big is coming which will lead to value unlocking
Very nice video.. You have missed one point though, what happens when the holding company actually sells all of those shares. Do they shareholders get rewarded ? There are many HCs who have taken the minority shareholders for a ride after selling all the holdings. LEEL which sold its business to Havell's never gave its investors what they deserved. Nor I have heard anything about Oscar Investment which held Ranbaxy which was then sold to Sun Pharma. Similar story is of Hinduja Global or Gwalior Chemicals who take the money and then invest into unlisted companies of promoters instead of giving it back to investors. In early 2000s, Eicher Ltd which owned majority shares in Eicher Motors Ltd.. Sadly they threw out minority shareholders by some scheme of arrangement. Hold co which invest only in promoter group companies are not worth investing at all. Even the best group can cheat minority shareholders.
Sir, you are gem 💎 in this Financial CZcams community ❤
Thank you so much, Baibhav ji for your kind words. Happy to play a small part in your financial journey.
True
I am using TIC as a mutual fund with excellent management and low expense ratio.
Very interesting topic with loads of simplified fundamental information...u really make learning about the stock market so easy 😊👍
Glad it was helpful! Thank you
Your each video is so much backed by data. Each video looks like a research paper.
Glad you like them!
Shankar Nath Sir, Thank You for bringing such topics and sharing the knowledge amongst us. You provide knowledge like no other Finance CZcamsr. Thank You.
So nice of you. It's my pleasure and I'm happy to be helping you in your financial journey
Been in market for few years and was assuming i know everything. Now i am learning 2 new things every week through your videos.
Great to hear! There's always something to learn. About 80% of the video topics I make, I have not much idea about .. and the research/scripting really cements my understanding and it is also bettering my own investing approach
@@shankarnath good to know sir.
more power to you & your team💪
The only Investing CZcams channels I follow is yours and SOIC , you guys are doing great work ,Thank you .
Much appreciated!
Very informative, covering things in such a crystal clear way, your channel will certainly go a long way. All the best bro
Thank you so much 🙂
Thank you is an under statement for the amazing content and with the simplicity with which you explain complex concepts. Appreciate it very much .
You're very welcome! Thank you very much 🙌
Thanks Shankar. This is a new perspective and I was in the same doubt why the holding companies are at discount.
Most welcome. Glad you found it useful
I am from Bangladesh. But I love to watch your video because they are really great. Quality of your content is really great. Thanks for your work.
Thank you so much, much appreciated 🙌
It's always a lot of research and analysis which goes behind I making such useful videos sir❤🙏
So nice of you. Thank you very much for your kind appreciation
Fantastic 👏 🤝.. That analogy and alternative to Aggressive Hybrid Fund in form of TIC 😅 was just too good.. Btw another can be NAUKRI, can it be?
Thank you! Please try Infoedge India and see for yourself. Prima facie, it didnt fit into the same framework as Infoedge has a running business of its own in Naukri, 99acres & Jeevansaathi while Tata Investment Corp. is a pure holding company.
@@shankarnath ah yes 😀 .. it slide thru
Good Information. Thanks for it. I agree your videos are completely different compared to others and very informative
Glad you think so! 🙌
Really glad to learn these types of Extraordinary content soo simple language.....
So nice of you. Thanks
Very well researched. Very interesting topic and certainly a food for thought for long term investors.
Thank you Rajeev ji. Glad it was helpful!
this channel is a hidden gem. You deserve a lot more... with time I am sure!
Thank you very much. I'm happy to know that you like the videos & content.
Absolute top-notch content and production quality.
Thank you !
One of the most difficult to analyse & monitor type of shares are Holding Companies.
But, if analysed correctly, these also happen to be the most rewarding.
Good stuff !! Need to see more like this which gives actionable insights !!
Thanks
Very interesting stuff in the video. Thanx. But i haven't understood whether or not to invest in hold cos. One more video on the same topic please
Most welcome. Well, it's a bit like politics and just like there are no permanent friends and permanent enemies -- there's never an "always buy" or "always avoid" situation in investing, metaphorically speaking.
May I request you to watch this video again; there were multiple scenarios discussed here itself incl. a) level of discount, b) prospects of underlying investments, c) operations of operating holding companies and d) presence of a catalyst.
Thank you so much. I have a question. As discussed in the video, the PE ratio is insignificant in pure holding companies. What about companies like Reliance or HDFC, which have their own businesses and a medium to large controllable stake in many companies? Is the PE ratio valid in such cases
In case of operating holding companies (Reliance, HDFC, Mahindra & Mahindra etc.), a split needs to be made on the value of operating business and value of subsidiaries. This way the real PE ratio can be figured out
One more interesting holding company is nbi industrial
Thank you for a very informative video. In fact, I haven’t heard about this topic ever before. Request if you could share some more information on this topic so as to understand the investment methodology.
Most welcome and thanks for the suggestion
Nice. Thanks for the detailed analysis 🎉
My pleasure! Glad you liked it 🙌
Amazing video. Adding Godrej Indus in the table would have been great
Thanks for the suggestion
Sir you are true Gem in finance industry ❤
Thank you, glad you found the content useful
@@shankarnath welcome sir it's honour to had a reply from you sir I admire you when it's finance really all your videos are relatable with middle class and your knowledge is no words keep doing great I have listen to many finance influencer by no one can match you sir 😊
thanks for such informative video
Most welcome. Glad you liked it
Good video sir can you share top 5 investment holding companies for investment pla
Could have covered infoedge a company which can actually sell their entire stake
That's why I didn't cover it. Infosys is more of VC styled spawner than a traditional holding company
I have 250 shares in sf holding😢
Plz make part2 of this video
Thanks for the suggestion
I have kama holding...its neither in profit or loss ...should i sell it of and invest in srf
Great work and commitment...
Thank you so much 😀
Great video 🎉
Thank you!
Vardhman holding is one of them
Thank you ❤
You're welcome 😊
Holding investment company (e.g. Tata Investment Corp) vs. Promoter Holding company (e.g. Tata Sons) are different. Most holdings companies are Promoter company of the conglomerate. Some are listed but many are private (strange that privately held company can hold the majority stake in public companies). As you have said, the Promoter company is unlikely to sell its holdings unless it wants to float another company!! Only a few holding companies' returns are better than Nifty returns over the long term.
Regretting not buying TIC @ 1300
Great info shared sir 🫡🫡🫡
Thank you very much!
sir very good information. god bless you
Glad you found it helpful, thanks for the appreciation!
Bajaj holdings & Kama holdings are core investment company & Tata investment corporation is a pure investment company.
Waiting for detailed video on types of NBFC companies in India 😊
Real knowledgable content 🙏
Thank you very much 🙌
Perhaps you should make Chelsea watch some of your videos for financial knowledge 😉
Have you had a chance to evaluate infoedge as a holding company investing in tech companies?
No, I haven't yet .. but I will. In my view, Infoedge comes out more as a spawner (incubator/grower of businesses) rather than a classical holding company (whose job is just to invest & hold shares)
@@shankarnath Given that nature of infoedge, won't there be a higher chance of the held companies growing faster and hence also the share price? A VC approach to holding if you will
@@1995Clint Apologies, I don't have an answer as I haven't analysed InfoEdge, Zomato or PBFintech. May I circle back on this comment when I get around to it.
I am holding Tata investment corp since 3 y with nice returns
What about Aditya Birla capital
Is it pure holding company?
No. It's an operating holding company. Kindly refer to this: www.bseindia.com/xml-data/corpfiling/AttachHis/aecb3dab-d7e4-4f7f-a3a4-97c2daf74dfa.pdf
@@shankarnath
I did not find standalone buisness of AB capital (even in this investor presentation)
Every buisness is run in some subsidiary.
Final results are always consolidated.
It's important question because at the time of IPO of AMC buisness, AB capital shareholders didn't get anything.
If in future, they list every subsidiary will we get shares? And what will be the buisness of Standalone.
@@RakeshSharma-ji4rf 1. In that case, this is a pure holding company. The FY23 revenue (standalone) was 218 crores with a bulk of it as dividend income.
2. In FY22, AB Capital sold 2,850,880 equity shares (FV of 5 rupees) of ABSL AMC Ltd at 712 rupees a share. This was captured as income by ABSL in their P&L statement leading to a pre-tax gain of 196 crores.
@@shankarnath
I did not get AMC share inspite of shareholder
That's why I don't understand this company
Unexplored until now
This year watch out for Sundaram HOLDING. Broken out after such a long consolidation. Rk damani holds 1.88 ℅Stake in it. Something big is coming which will lead to value unlocking
You think Berkshire Hathaway is also trading at a discount?
I haven't analysed BH, so won't be right of me to comment on this
@@shankarnath ok
Do you give stock recommendations through a weekly/monthly mail?
@@drharshilrohit9148 No, presently I don't.
Very nice video.. You have missed one point though, what happens when the holding company actually sells all of those shares. Do they shareholders get rewarded ? There are many HCs who have taken the minority shareholders for a ride after selling all the holdings.
LEEL which sold its business to Havell's never gave its investors what they deserved. Nor I have heard anything about Oscar Investment which held Ranbaxy which was then sold to Sun Pharma. Similar story is of Hinduja Global or Gwalior Chemicals who take the money and then invest into unlisted companies of promoters instead of giving it back to investors. In early 2000s, Eicher Ltd which owned majority shares in Eicher Motors Ltd.. Sadly they threw out minority shareholders by some scheme of arrangement.
Hold co which invest only in promoter group companies are not worth investing at all. Even the best group can cheat minority shareholders.
Why data of 2022 in 2023 the valuation will be different? How relevant?
Why is Berkshire different from these lets say tata?
Adipoli👌👍
abhinandanathinu nandi 🙌
@@shankarnath 😀👍
Legend enters at 13:24