CMP: ₹202 | Market Cap: ₹653 Cr | Face Value: ₹10
🧾 At a glance
Consolidated Finvest & Holdings Ltd (CFHL), the mysterious investment arm of the O.P. Jindal Group, just dropped its FY25 results. On paper, it looks like they’re printing money — a ₹10,828 lakh net profit and a whopping ₹21,928 lakh comprehensive income. But dive into the cash flow, and it’s… a polite “huh?”. Cash in bank? ₹4 lakh. Literally. Time to dissect the numbers, decode the games, and see if this NBFC is a hidden gem or a valuation illusion.
🧠 About the Company
- 🏢 Name: Consolidated Finvest & Holdings Ltd
- 🏦 Type: NBFC (Registered with RBI as a “Middle Layer” NBFC)
- 🧬 Business Model: Invests in equity (primarily Jindal Group), loans to group firms
- 🛠️ No operating revenue, but heavy fair value adjustments
- 🎯 Segment Reporting? Not applicable – they only do one thing: play the market
👩💼 Key Managerial Personnel (KMP)
- Chairman: Not disclosed in filing
- Company Secretary: Anil Kaushal (FCS 4502)
- Statutory Auditors: Kanodia Sanyal & Associates (issued unmodified opinion)
📊 Financials (Standalone – FY25 vs FY24)
| Particulars | FY25 (₹ lakh) | FY24 (₹ lakh) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 6,157 | 4,702 | +31% |
| Other Income | 374 | 205 | +82% |
| Total Income | 7,143 | 5,169 | +38% |
| Total Expenses | 55 | 79 | -30% |
| PBT | 7,088 | 5,090 | +39% |
| PAT | 10,827 | 4,646 | +133% (thanks, deferred tax trick!) |
| Comprehensive Income | 21,928 | 6,480 | +238% |
| EPS (Basic & Diluted) | ₹33.49 | ₹14.37 | +133% |
| Dividend Recommended | ₹1.13/share | ₹1.00/share | +13% |
🧾 Cash Flow Reality Check
| Particulars | FY25 (₹ lakh) | FY24 (₹ lakh) |
|---|---|---|
| Cash Flow from Ops | +999 | +1,388 |
| Cash Flow from Investing | -997 | -1,387 |
| Cash Flow from Financing | -2 | 0 |
| Net Change in Cash | ₹2 | ₹-1 |
| Cash at Year-End | ₹4 lakh | ₹2 lakh |
😶 A ₹21,928 lakh income and they have ₹4 lakh in hand. That’s like calling yourself a billionaire because your Pokémon cards might be worth something.
💹 Balance Sheet Snapshot (₹ in lakh)
| Particulars | FY25 | FY24 |
|---|---|---|
| Investments | 1,11,926 | 92,182 |
| Loans | 245 | 245 |
| Total Assets | 1,12,383 | 92,622 |
| Deferred Tax Liability | 9,619 | 11,784 |
| Equity Share Capital | 3,233 | 3,233 |
| Other Equity | 99,511 | 77,582 |
💡 Key Highlight: Massive increase in investment book (~₹20,000 lakh), driven by mark-to-market gains, particularly in Jindal India Power Ltd.
🔍 Fair Value Gains — The Engine Room
- 📈 Fair valuation gain of ₹9,976 lakh booked in FY25 from Jindal India Power Ltd
- 🎩 Original investment: ₹2,320 lakh
- 🎯 Fair Value now? Over ₹12,000 lakh!
So, nearly 5x markup on an internal group holding. Independent valuer: ✅
Realized gains? ❌
Liquidity? ❌
Credibility? 🤔
📈 Forward-Looking Fair Value (FV) Estimate
Let’s assume they manage a stable 12% RoE going forward on the expanded ₹99,511 lakh equity:
- FY26E PAT: ₹11,941 lakh
- PE Valuation (Conservative 8x): ₹95,528 lakh
- Market Cap (Current): ~₹653 Cr
- Implied Upside: ~46% if valuations hold and profits realize — big IF.
But keep in mind — this assumes market-linked fair value gains continue, and that they’re not only on paper.
🌐 EduInvesting Take
Consolidated Finvest is the “Crypto Bro” of NBFCs — all flash, very little cash. They’re booking enormous fair value gains (especially from group entities like Jindal India Power), but there’s virtually no operating cash, no meaningful business operations, and the income is entirely market-driven.
Yes, the EPS is high. But it’s not because they earned more — it’s because their investments went up in theory.
⚠️ Risks & Red Flags
- 🧾 Overdependence on group company valuations (especially Jindal India Power)
- 💰 Minimal liquidity (₹4 lakh cash at year-end!)
- 🧮 Deferred tax flip (+₹3,777 lakh) boosted FY25 profit artificially
- 🧾 No segmental income — pure play on capital markets
- 📉 Market can reverse — fair value gains can flip to losses next year
🧠 Final Verdict
If you’re into companies that look rich on paper but can’t afford a cab, this one’s for you. For everyone else, treat Consolidated Finvest like your childhood pog collection — fun to look at, but don’t expect it to pay your rent.
Author: Prashant Marathe
Date: May 29, 2025
Tags: Consolidated Finvest, Jindal Group, NBFC results, Fair value gains, Dividend stocks, Investment holding companies, Audited results FY25, EduInvesting analysis
