1.At a Glance
Bengal & Assam Company Ltd (BACL) is essentially the JK Group’s family vault — aCore Investment Company (CIC)holding stakes in the group’s operating arms. Instead of selling cement, tyres, or paper itself, it letsJK Lakshmi Cement, JK Tyre, JK Paper, etc.do the heavy lifting. The result? Earnings and asset values are tied to the fortunes of these subsidiaries and listed investments.
- Market Cap:₹9,045 Cr
- CMP:₹8,007
- P/E:12.5×
- Book Value:₹8,634 (trading at 0.93× BV — rare in this market)
- Debt:Minimal — almost debt-free.
- ROE:7.69%
2.Introduction
Think of BACL as a financial landlord — its “tenants” are group companies that send dividends and capital gains instead of rent. The company’s performance is less about quarterly hustle and more about long-term compounding of these strategic stakes. This structure makes itstable, but not flashy, and very sensitive to market value swings of its holdings.
3.Business Model (What’s Under the Hood)
- 97% of assets are investmentsin group companies.
- Core holdings:
- JK Lakshmi Cement
- JK Tyre & Industries
- JK Paper
- JK Agri Genetics
- Umang Dairies
- JK Fenner (India)(unlisted)
- Makes money mainly via:
- Dividends from subsidiaries.
- Share of profits from group entities.
- Sale of investments (occasionally).
4.Financials Overview (Quarterly)
| Metric | Q1 FY26 | Q4 FY25 | QoQ % | Q1 FY25 | YoY % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 573 | 521 | 10% | 528 | 8.5% |
| EBITDA (₹ Cr) | 101 | 93 | 8.6% | 110 | -8.2% |
| EBITDA Margin | 18% | 18% | — | 21% | ↓ |
| PAT (₹ Cr) | 258 | 231 | 11.7% | 317 | -18.6% |
| EPS (₹) | 219.05 | 197.56 | 10.9% | 275.57 | -20.5% |
5.Valuation – Educational Fair Value Range
Method 1: NAV-based (most relevant for holding companies)
- Book Value: ₹8,634/share.
- Listed holdings (JK Lakshmi Cement, JK Tyre, etc.) currently trade at varying multiples.
- Holding company discount in India averages30–50%.
- Educational FV range:₹5,500 – ₹7,800.
Method 2: P/E method
- Current P/E = 12.5×; industry (NBFC-holdco) average = 8–15×.
- FV range on earnings basis: ₹7,500 – ₹9,500.
Blended Educational FV Range:₹6,000 – ₹8,500.
6.Triggers & News
- NCLT-approved scheme of arrangementin June 2025 — likely impacting asset structure.
- Appointednew independent directorin Aug 2025.
- Q1 FY26 showspost-restructuring comparatives, making YoY numbers a bit distorted.
- Any re-rating in JK Group operating companies will directly boost BACL’s NAV.
7.Balance Sheet Highlights (FY25)
| Metric | FY24 | FY25 |
|---|---|---|
| Total Assets | ₹10,437 Cr | ₹11,368 Cr |
| Net Worth | ₹9,055 Cr | ₹9,753 Cr |
| Borrowings | ₹422 Cr | ₹556 Cr |
| Investments | ₹9,090 Cr | ₹9,869 Cr |
