1. At a Glance
A sleepy ₹9,500 Cr Core Investment Company with more subsidiaries than employees, Bengal & Assam Company Ltd (BACL) is the holding mothership of the legendary JK Group. It’s not here to build businesses—it’s here to own them.
2. Introduction with Hook
Imagine a landlord so rich, he doesn’t rent rooms—he just buys entire apartment buildings. That’s Bengal & Assam Company Ltd. The financial equivalent of a vintage Rolls Royce: slow, regal, expensive, and not in a rush.
- BACL trades at ₹8,440, just shy of its book value of ₹8,634
- Holds investments in JK Lakshmi Cement, JK Tyre, JK Paper, JK Fenner, and more
- FY25 Net Profit: ₹755 Cr on Sales of just ₹2,128 Cr—talk about passive income
3. Business Model (WTF Do They Even Do?)
BACL is a Core Investment Company (CIC-ND-SI) registered with RBI. It’s not in the business of operations. It is in the business of owning businesses.
Think Berkshire Hathaway—but Indian, older, more cement-focused, and with lesser charm from Mr. Buffett.
It holds:
- 46.7% in JK Lakshmi Cement
- 47.8% in JK Tyre
- 42% in JK Paper
- 100% of JK Fenner, Umang Dairies
- 90% of Divyashree Co.
- Newly demerged: JK Agri Research Services Ltd
Basically, it’s JK Group’s investment umbrella with more subsidiaries than your extended family’s WhatsApp groups.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹16,521 Cr | ₹12,962 Cr | ₹2,128 Cr |
| Operating Profit | ₹1,618 Cr | ₹1,918 Cr | ₹401 Cr |
| Net Profit | ₹1,071 Cr | ₹4,194 Cr | ₹755 Cr |
| EPS (₹) | 830 | 3,445 | 648 |
| Dividend Payout | 3% | 1% | 8% |
Observations:
- FY24 was a fluke due to a ₹2,900 Cr other income (likely asset sale or fair value gain).
- FY25 EPS normalized, but still juicy for a passive-holding co.
5. Valuation
Let’s look at what you’re actually buying at ₹8,440/share:
- Book Value: ₹8,634 → P/BV = 0.98x (a literal discount holding company)
- PE Ratio = 13.2 (trailing)
- Majority of the value is in its holdings:
Implied SOTP (Sum of the Parts):
| Holding | Stake | Market Value (₹ Cr) |
|---|---|---|
| JK Lakshmi Cement | 46.7% | ~₹4,000 Cr |
| JK Paper | 42% | ~₹2,200 Cr |
| JK Tyre | 47.8% | ~₹3,100 Cr |
| Umang Dairies, JK Agri Genetics | Unlisted | Est. ₹1,000+ Cr |
Estimated Total NAV = ₹10,000–₹11,000 Cr
Fair Value Range: ₹9,800 – ₹11,300
Current MCap: ₹9,534 Cr → Trading near lower end of intrinsic value
6. What’s Cooking – News, Triggers, Drama
- Massive Restructuring: NCLT-sanctioned merger-demerger involving Umang Dairies, Panchmahal Properties, and Bengal & Assam Co.
- New Subsidiary: JK Agri Research Services spun off.
- Stamp Duty Fight: High Court granted a stay on coercive tax collection.
- Dividend Uptick? Finally paid a decent 8% payout this year.
This isn’t your typical ‘every-quarter drama’ stock. It’s more of a sit-tight-and-watch-your-holdings-grow gig.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets | ₹17,226 Cr | ₹10,437 Cr | ₹11,368 Cr |
| Equity Capital | ₹11 Cr | ₹11 Cr | ₹11 Cr |
| Reserves | ₹5,502 Cr | ₹9,044 Cr | ₹9,742 Cr |
| Borrowings | ₹5,185 Cr | ₹422 Cr | ₹556 Cr |
Key Points:
- Deleveraged drastically from ₹5,185 Cr to just ₹556 Cr in FY25.
- Investment-heavy book, minimal fixed assets.
- Extremely lean and clean post-restructuring.
8. Cash Flow – Sab Number Game Hai
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | ₹1,437 Cr | ₹1,817 Cr | ₹294 Cr |
| Investing CF | -₹647 Cr | -₹1,392 Cr | -₹286 Cr |
| Financing CF | -₹778 Cr | -₹590 Cr | ₹39 Cr |
Narrative:
- Positive operating cash, consistently.
- Heavy investing activity = buying/realigning group holdings
- FY25 saw subdued movement post-demerger
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 15% | 8% | 7.69% |
| ROCE | 10% | 14% | 4.28% |
| OPM | 10% | 15% | 19% |
| PE Ratio | 12 | 3.8 | 13.2 |
| Dividend Yield | 3% | 1% | 0.47% |
Conclusion:
Financially conservative, but not exciting. Ratios are clean. Could use better ROCE going forward.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹16,521 Cr | 10% | ₹1,071 Cr | ₹830 |
| FY24 | ₹12,962 Cr | 15% | ₹4,194 Cr | ₹3,445 |
| FY25 | ₹2,128 Cr | 19% | ₹755 Cr | ₹648 |
Insights:
- FY24 = freak one-time gains.
- FY25 = realistic.
- Future = wait for next holding magic
11. Peer Comparison
| Company | CMP | PE | ROE | Mcap (₹ Cr) | P/BV |
|---|---|---|---|---|---|
| Bengal & Assam | ₹8,440 | 13.2 | 7.69% | ₹9,534 | 0.98 |
| Bajaj Holdings | ₹7,585 | 14.5 | 10%+ | ₹84,000+ | 1.0+ |
| Sundaram Finance | ₹5,038 | 30.1 | 15.3% | ₹55,000+ | 2.6 |
| HDB Financial | ₹814 | 31.1 | 14.7% | ₹67,609 | — |
BACL is the value pick if you want exposure to JK Group—but with patience of a Buddhist monk.
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding (Jun 2025) |
|---|---|
| Promoters | 73.02% |
| FIIs | 4.55% |
| DIIs | 0.01% |
| Public | 22.41% |
- 20,000+ shareholders
- No major pledges
- Changes driven by group restructuring
13. EduInvesting Verdict™
Bengal & Assam is the black box of the JK Group’s empire. It doesn’t build brands—it builds stakes. It’s your ticket to own all of JK Group in one stock. But don’t expect fireworks—this is slow compounding, deep-value territory.
It’s like investing in a tree. You don’t get flowers. But you do get shade. And eventually—lots of fruit.
Metadata
- Written by EduGPT | 16 July 2025
- Tags: Holding Company, JK Group, Core Investment Company, Bengal & Assam, Deep Value, Slow Compounders, NBFC
