1. At a Glance
Once upon a time, it made peroxides. Now, it “invests.” Naperol Investments Ltd (the reincarnation of National Peroxide Ltd) is technically in the investment and lending business. But behind that mild-mannered description lies a ₹1,200 crore balance sheet with ₹1,062 crore in investments—more than its own market cap. Is it undervalued or just underwhelming?
2. Introduction with Hook
Imagine a company that owns assets worth more than its own market valuation—like someone owning a Lamborghini but hitchhiking to work. That’s Naperol Investments for you.
- Book value: ₹2,041 per share
- CMP: ₹1,070
- Market Cap: ₹615 Cr
- Value of investments: ₹1,062 Cr
Clearly, either the market’s drunk or Naperol is hiding something in plain sight.
3. Business Model (WTF Do They Even Do?)
After a Scheme of Arrangement in 2023, National Peroxide Ltd was carved into three avatars:
- Naperol Investments Ltd – the investment and leasing company
- NPL Chemicals Ltd – the manufacturing unit
- Residual National Peroxide – the courtroom drama veteran
Now, Naperol’s core business is:
- Managing long-term investments
- Leasing activities
- Corporate lending (if and when it feels like)
So, no actual operations—just balance sheet maneuvering and asset holding.
4. Financials Overview
| Year | Sales (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) | ROE (%) | ROCE (%) |
|---|---|---|---|---|---|---|
| FY23 | ₹2 | ₹375 | 658.33 | -13% | 0% | -0% |
| FY24 | ₹2 | -₹0.6 | -0.65 | -32% | -0.6% | -0.2% |
| FY25 | ₹20 | ₹11 | 18.51 | 57% | 1% | 1% |
Key takeaway: Their income fluctuates like an emotionally unstable ex. Most of the “profit” is due to non-operational, one-off income like fair value gains post demerger.
5. Valuation
Current Price: ₹1,070
Book Value: ₹2,041
Market Cap: ₹615 Cr
Investments on Books: ₹1,062 Cr
Valuation Methods:
- Net Asset Value (NAV) based Fair Value: ₹1,700–₹2,100
- Comparable holding companies (like Tata Investment Corp): Price/BV ranges 0.5x–1x
Fair Value Range for Naperol: ₹1,500–₹2,000
TLDR: It’s trading at 0.5x book while holding legit ₹1,000+ Cr in investments. The stock is either deeply undervalued… or markets know something we don’t.
6. What’s Cooking – News, Triggers, Drama
- Scheme of Arrangement effective Sept 2023 — major demerger of chemical business
- CFO Exit: April 2024. Might raise eyebrows.
- Investment Portfolio: Still opaque; more clarity from NPL Chemicals awaited
- Promoter Holding: 70.77% = Tight float
Catalysts:
- Clarity on investment portfolio
- Dividends from investee companies
- Listing of NPL Chemicals (potential value unlock)
- Legal clarity on past disputes
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | ₹6 Cr | ₹6 Cr | ₹6 Cr |
| Reserves | ₹552 Cr | ₹1,049 Cr | ₹1,158 Cr |
| Borrowings | ₹0 | ₹0 | ₹0 |
| Total Liabilities | ₹559 Cr | ₹1,078 Cr | ₹1,205 Cr |
| Investments | ₹547 Cr | ₹1,065 Cr | ₹1,190 Cr |
| Fixed Assets | ₹0 | ₹0 | ₹0 |
Strong reserves, zero debt, massive investments. But no real business operations.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | ₹1 | ₹1 | -₹3 | -₹0 |
| FY24 | ₹1 | ₹0 | -₹1 | ₹1 |
| FY25 | -₹3 | ₹11 | -₹6 | ₹2 |
Key: Cash flows are erratic, but that’s expected from an investment company.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | -0.6% | -0.65% | 1% |
| ROCE | -0.2% | -0.2% | 1% |
| Debt/Equity | 0 | 0 | 0 |
| P/E | NA | NA | 58.3x |
| Price/Book | 0.52x | 0.52x | 0.52x |
Not sexy. Not stressy. Just sleepy.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM | PAT | EPS | Other Income |
|---|---|---|---|---|---|
| FY24 | ₹2 Cr | -32% | -₹0.6 Cr | -0.65 | ₹0 Cr |
| FY25 | ₹20 Cr | 57% | ₹11 Cr | 18.51 | ₹1 Cr |
PAT mostly from non-core ops. A financial engineering fiesta.
11. Peer Comparison
| Company | CMP | MCap (₹ Cr) | P/B | ROE | ROCE | Dividend |
|---|---|---|---|---|---|---|
| Tata Inv Corp | ₹6,605 | ₹33,420 | 1.07 | 1.02% | 1.21% | 0.41% |
| JSW Holdings | ₹21,915 | ₹24,325 | 0.78 | 0.69% | 0.82% | 0.00% |
| Mah. Scooters | ₹14,307 | ₹16,350 | 0.53 | 0.61% | 0.59% | 0.98% |
| Naperol | ₹1,070 | ₹615 | 0.52 | 0.95% | 1.06% | 0.84% |
Looks dirt cheap relative to peers. But also micro-sized and illiquid.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 70.77% (no change)
- FII Holding: 1.98% (up from 0% in last year)
- Public Holding: 27.23%
- # of Shareholders: Just 15,717 – tight float = potential volatility
- Dividend Yield: 0.84%
13. EduInvesting Verdict™
Naperol Investments Ltd is like a locked treasure chest. It’s holding valuable assets (₹1,062 Cr investments) but no one’s sure when (or if) they’ll be unlocked. It trades at half of book value and under its net asset value.
- It could be a value investor’s paradise…
- Or a value trap wearing old National Peroxide cologne.
Until the fog around NPL Chemicals clears and cash starts flowing from those investments, Naperol will remain more of a “watch and wait” holding company story than a growth rocket.
Metadata
– Written by EduInvesting | July 12, 2025
– Tags: Naperol Investments Ltd, Holding Company, Value Unlock, Demerger, Deep Value, National Peroxide, Smallcap Watchlist
