1. At a Glance
NBI Industrial Finance Co. Ltd is a deep-discount NBFC that invests in listed equities and barely blinks. The company recently absorbed Western India Commercial Co. Ltd and still trades at 0.26x book value—a number so low, even Warren Buffett would raise an eyebrow.
2. Introduction with Hook
Imagine owning ₹11,000 worth of assets for every ₹2,800 you spend—and still not being popular at parties. That’s NBI Industrial Finance.
- Book value per share: ₹11,195
- Market Price: ₹2,856
- Market Cap: ₹844 Cr
Now add a twist: they just completed a merger and got slapped with a ₹7.91 Cr stamp duty demand. Welcome to the holding company circus—complete with undervaluation, zero liquidity, and surprise tax bills.
3. Business Model (WTF Do They Even Do?)
- Registered NBFC, regulated by RBI
- Core revenue: Dividend income, capital gains on equity investments
- Investment style: Long-term holdings in highly liquid, listed companies
- Strategy: Sit tight, collect dividends, avoid drama (except the stamp duty one)
- Recent Expansion: Absorbed Western India Commercial Company Ltd via NCLT-approved merger (effective 1 April 2022)
In short: they don’t do much, but they own a lot.
4. Financials Overview
| Year | Sales (Cr) | Net Profit (Cr) | EPS (₹) | OPM % | ROE % | Book Value (₹) |
|---|---|---|---|---|---|---|
| FY21 | 2.16 | 1.61 | 6.55 | 45% | 0.05% | 8,841 |
| FY22 | 12.26 | 7.94 | 32.32 | 89% | 0.47% | 9,910 |
| FY23 | 10.16 | 5.27 | 21.45 | 78% | 0.35% | 9,970 |
| FY24 | 12.96 | 7.87 | 32.03 | 83% | 0.46% | 11,150 |
| FY25 | 13.93 | 8.49 | 28.73 | 77.5% | 0.30% | 11,195 |
Key point: Steady earnings, sky-high book value, and not a whiff of leverage.
5. Valuation
- Current Price: ₹2,856
- Book Value: ₹11,195
- Price/Book: 0.26x
- PE Ratio: 99.4 (because earnings are low vs. NAV)
Fair Value Estimate (Range):
Based on historical holding company discounts (typically 50–70%)
- Optimistic FV (50% discount to BV): ₹5,600–₹6,000
- Conservative FV (75% discount): ₹2,800–₹3,000
- Median FV Range: ₹3,500–₹5,500
This is a NAV discount story, not an earnings one.
6. What’s Cooking – News, Triggers, Drama
- Merger Madness: Completed absorption of Western India Commercial Co. (WICC)
- Stamp Duty Trouble: ₹7.91 Cr demand from state authority (under dispute)
- Earnings Uptrend: FY25 EPS up 33% YoY
- Public Shareholding Shrinking: Possibly due to creeping promoter consolidation?
- Minimal Liquidity: Low float = tough entry/exit for large investors
Trigger to watch: Any clarity on the legal stamp duty battle or revaluation of portfolio holdings could lead to a re-rating.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹1.23 Cr | ₹1.23 Cr | ₹1.48 Cr |
| Reserves | ₹2,356 Cr | ₹2,336 Cr | ₹3,306 Cr |
| Borrowings | ₹0 Cr | ₹0 Cr | ₹0 Cr |
| Investments | ₹2,457 Cr | ₹2,426 Cr | ₹3,512 Cr |
| Other Liabilities | ₹100 Cr | ₹88 Cr | ₹205 Cr |
| Total Assets | ₹2,458 Cr | ₹2,426 Cr | ₹3,513 Cr |
Key Points:
- Zero debt
- ₹3,500+ Cr in investments
- Only ₹844 Cr market cap
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow (₹ Cr) |
|---|---|---|---|---|
| FY23 | 5.74 | -11.82 | 0.00 | -6.07 |
| FY24 | 5.68 | -5.57 | -0.10 | 0.01 |
| FY25 | 4.97 | -4.75 | -0.12 | 0.10 |
Key Points:
- Positive and consistent operating cash flow
- Reinvestment-heavy
- Financing is minimal—no debt raise, no dividends mostly
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 0.35% | 0.46% | 0.30% |
| ROCE | 0.35% | 0.46% | 0.38% |
| Debt/Equity | 0.00 | 0.00 | 0.00 |
| P/B Ratio | 0.26 | 0.26 | 0.26 |
| Dividend Yield | 0.00 | 1.56% | 0.00 |
Verdict:
Zero leverage, but also zero excitement unless you love deeply discounted NAVs.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | OPM % | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY21 | 2.16 | 45.4% | 1.61 | 6.55 |
| FY22 | 12.26 | 88.7% | 7.94 | 32.32 |
| FY23 | 10.16 | 77.6% | 5.27 | 21.45 |
| FY24 | 12.96 | 82.6% | 7.87 | 32.03 |
| FY25 | 13.93 | 77.5% | 8.49 | 28.73 |
11. Peer Comparison
| Company | P/B | ROE % | Market Cap (₹ Cr) | BV/share (₹) | Price (₹) |
|---|---|---|---|---|---|
| NBI Industrial Fin | 0.26 | 0.30% | ₹844 Cr | ₹11,195 | ₹2,856 |
| Bajaj Finance | 6.00 | 19.2% | ₹5,80,103 Cr | ₹155 | ₹933.5 |
| Muthoot Finance | 3.61 | 19.6% | ₹1,06,012 Cr | ₹731 | ₹2,640 |
| Chola Finance | 5.44 | 19.7% | ₹1,28,910 Cr | ₹384 | ₹1,532 |
Key Point: NBI is the undisputed king of book value discount—but ROE and liquidity? Zilch.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 74.17% (very sticky)
- FIIs: 0.17% (started sniffing)
- DIIs: 2.46% (marginal but increasing)
- Public: 23.20%
- Merger Impact: 4.98 lakh shares issued under amalgamation with WICC
- Legal Overhang: Stamp duty of ₹7.91 Cr for merger being contested
13. EduInvesting Verdict™
NBI Industrial Finance is the spiritual successor of those “benevolent landlords” in Bollywood films—loaded with land (or in this case, equity investments), but never flashy.
This is not a compounder. It’s a deep-value NAV discount play, where price appreciation depends entirely on:
- Realisation of asset value (sale or re-rating)
- Corporate clean-up and transparency
- A market re-rate of holding companies
Until then? Investors will need patience, and a strong stomach for boredom.
Metadata
– Written by EduInvesting Research | 12 July 2025
– Tags: NBFC, Holding Company, Deep Value, NAV Discount, Mergers, Hidden Gems, Underfollowed Stocks
