1. At a Glance
Founded in 1916 (yes, before sliced bread was invented), Dhunseri Ventures Ltd has survived two World Wars, multiple recessions, and the complete rise and fall of Orkut. The company’s portfolio today is like a Netflix account—shared across unrelated genres: treasury operations, commodity trading, and… cupcakes. Yes, from PET resin to chocolate frosting, this is diversification on steroids.
2. Introduction
Picture a 109-year-old corporate elder sitting in Kolkata, sipping Darjeeling tea, while deciding whether to invest in equities, trade PET resin, or bake cupcakes for Singaporeans. That’s Dhunseri Ventures. The market doesn’t quite know whether to treat it as a financial holding company, a commodity trader, or an F&B player.
What makes it spicy? A P/E of 8.98—cheap on paper—but a book value so high (₹911) that the CMP is trading at just 0.41x BV. That’s the stock market equivalent of finding a BMW in OLX listings priced like a second-hand Hero Splendor. But before you get too excited, remember—low valuation often comes with baggage. In this case, low ROE (4.65%) and an earnings profile stuffed with “Other Income” calories.
3. Business Model (WTF Do They Even Do?)
- Treasury Operations – The bread and butter. Think of it as a corporate version of that uncle who invests in stocks but actually lives off dividend cheques.
- Trading (PET Resin) – They shuffle plastic resin like poker chips, capitalizing on commodity price movements.
- F&B via Twelve Cupcakes (Singapore) – Their
- overseas arm churns out cupcakes and sells them to sugar-deprived office workers in Singapore.
- US Cupcake Expansion – Because why not? If you’ve already sold resin in India, you might as well sell frosting in America.
Essentially, they’re a diversified investment and trading company with a sweet tooth.
4. Financials Overview
Latest TTM Revenue: ₹595 Cr
Latest TTM Net Profit: ₹144 Cr
EPS (TTM): ₹41.55 → Annualized for P/E: ₹371 ÷ ₹41.55 = P/E ~8.93 (close to given 8.98).
Revenue CAGR over last 5 years: 50% (helped by base effects).
Net profit growth (5Y CAGR): 36%.
ROCE: 6.55% → That’s like running a marathon for a participation certificate.
The catch? In FY25, Other Income was ₹242 Cr, which is like winning a jackpot in your P&L without having to actually sell more cupcakes or resin.
5. Valuation – Fair Value Range
| Method | Assumption | Value (₹) |
|---|---|---|
| P/E Method | Sector avg P/E 12–15 × EPS ₹41.55 | ₹498 – ₹623 |
| EV/EBITDA | EBITDA ₹58 Cr (TTM), EV/EBITDA 8–10 | ₹464 – ₹580 |
| DCF | FCF growth 5%, discount rate 12% | ₹450 – ₹520 |
