At a Glance
Naperol Investments Ltd just delivered a Q1 FY26 PAT of ₹7.75 lakh. Yes, that’s lakhs, not crores. Revenue came in at a microscopic ₹3.23 Cr, yet the company sits on investments worth ₹1,062 Cr – almost double its market cap (₹617 Cr). The stock trades at ₹1,074, sporting a P/E of 58.5 and a book value of ₹2,041. Welcome to the paradox of an investment company where market value screams bargain, but earnings whisper “meh.”
Introduction
Born in 1954, Naperol is basically an investment arm with a faint memory of manufacturing peroxygen chemicals. Its core business today is holding investments and leasing, with a side of corporate lending. Think of it as a mutual fund that forgot to market itself.
Despite near-zero operational activity, its investment portfolio is the hidden gem here – with market value higher than the entire company. But profits remain negligible, making this more of a holding play than a growth story.
Business Model (WTF Do They Even Do?)
- Investment Holdings: The company earns from dividends and capital appreciation on its investments.
- Leasing: Minimal.
- Chemicals (Legacy): Barely functional now.
Revenue is inconsistent, driven more by other income than core operations. In simple terms, it makes money when its investments do well.
Financials Overview
- Revenue (Q1 FY26): ₹3.23 Cr (up YoY from ₹1.73 Cr).
- PAT: ₹0.08 Cr (₹7.75 lakh).
- OPM: <1%.
- EPS: ₹0.14.
- Dividend Yield: 0.83%.
The income statement looks like a hobby project. Yet, the balance sheet tells another story.
Valuation
- P/E Method: EPS ₹19.2 × Industry P/E 25 ⇒ ₹480 (but irrelevant due to low earnings).
- P/B Ratio: CMP/Book Value = 0.53 ⇒ Value play.
- Sum of Parts: Investments worth ₹1,062 Cr vs market cap ₹617 Cr ⇒ Intrinsic value easily ₹1,700 – ₹1,800.
🎯 Fair Value Range: ₹1,400 – ₹1,800
Stock at ₹1,074 still trades below its asset value.
What’s Cooking – News, Triggers, Drama
- Q1 profits negligible, but investment portfolio remains strong.
- AGM scheduled for Sept 4 via video conference (yawn).
- Book closure Aug 29 – Sept 4.
- No M&A buzz, no major corporate action.
The only trigger? Unlocking investment value.
Balance Sheet – Auditor Comedy
| Particulars | Mar 2025 (₹ Cr) |
|---|---|
| Assets | 1,205 |
| Liabilities | 47 |
| Net Worth | 1,158 |
| Borrowings | 0 |
Commentary: A fortress balance sheet with investments forming the bulk. Debt-free but cash flows are a joke.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) |
|---|---|---|---|
| 2023 | 1 | 0 | -3 |
| 2024 | -3 | 0 | -1 |
| 2025 | 2 | 11 | -6 |
Commentary: Operations barely move the needle, but investments keep adding assets.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 0.95% |
| ROCE | 1.06% |
| P/E | 58.5 |
| PAT Margin | 0.93% |
| D/E | 0.0 |
Commentary: Return ratios are embarrassing; asset coverage is fantastic.
P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| 2023 | 2 | -1 | 0 |
| 2024 | 20 | 11 | 11 |
| 2025 | 23 | 12 | 11 |
Commentary: Revenue spike in FY24-25 due to one-offs. Core business? Flat.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Tata Inv Corp | 304 | 312 | 109 |
| JSW Holdings | 248 | 196 | 119 |
| Mah. Scooters | 205 | 194 | 90 |
| Naperol Invest | 23 | 11 | 59 |
Commentary: Compared to peers, Naperol trades at a lower P/E and P/B, but lacks earnings power.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 70.8% (stable).
- FIIs: 1.7% (creeping in).
- DIIs: 0.02% (insignificant).
- Public: 27.5% (patiently waiting).
Promoters clearly in control; float is limited.
EduInvesting Verdict™
Naperol Investments is the classic holding company discount story – assets far exceed market cap, but earnings are negligible. This is a play on asset unlocking, not operational performance.
SWOT Snapshot:
- Strengths: Strong investment portfolio, debt-free, undervalued vs assets.
- Weaknesses: Low profitability, negligible cash flows.
- Opportunities: Monetization of investments, corporate restructuring.
- Threats: Value trap if no unlocking happens.
For value investors, this is a long-term patience game. For traders, the price will only move when corporate action finally wakes the stock up.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Naperol Investments, Holding Company, Q1 FY26 Results, Asset Value Unlock
