Thought for the Day

"Unless you can watch your stock holdings decline by 50% without becoming panic-stricken, you should not be in the stock market." - Warren Buffett

"I let our marketable equities tell us by their operating results - not by their daily, or even yearly, price quotations - whether our investments are successful. The market may ignore business success for a while, but eventually will confirm it." - Warren Buffett

The Top Unlisted

It's 145 years old and is the biggest agribusiness firm in the US. The Minnesota-headquartered Cargill Inc has sales of $107 billion, a presence in 66 countries and—wait for this—is not listed on any stock exchange in the world. The Cargill-MacMillan families own 85% of the company—the employees hold the rest. The family has a presence on the board but the company is managed by professionals. “The leaders of Cargill are all employees, including Chairman Greg Page,” says Cargill India Chairman Siraj A Chaudhry. The bulk of the conglomerate’s growth has come from re-investment of its earnings, including those of the primary shareholders. “We have to earn our growth,” says Chaudhry. And yes, they have. Had Cargill listed, it would rank among the top 10 in the Fortune 500 global list. Instead, it’s a rarer-than-rare case of a larger corporation staying away from the glory of the bourse, the place where wealth multiplies and is acknowledged.

"Size [growth]and listing go hand-in-hand, except for government companies, where capital is not a constraint."—Rajeev Gupta, MD, Carlyle India

Unfortunately, at a time when foreign funds are ready to pump in billions into the Indian capital market, several Indian companies are choosing the same path. Many of the most profitable companies in India remain in the private domain and, contrary to intuitive logic, they aren’t all family businesses. Take a peek at who’s missing from the stock exchange rosters: Star India, the leading television network; Bennett, Coleman (BCCL), the largest print media house; Bharat Sanchar Nigam (BSNL) and Vodafone Essar, the largest telecom companies; Life Insurance Corporation and General Insurance Corporation, the biggest insurer and reinsurer in India; Citibank, the largest foreign bank; and top car-makers like Hyundai, General Motors, Ford and Mercedes. That’s just a sample: the list runs into thousands. But just how profitable are these companies? And how well are they run compared to their listed peers who are constantly under the scanner?
In this special issue, Outlook Business offers you a glimpse into several unlisted companies. Many of these aren’t just large and well-known; they’re also good at what they do and make a lot of money, making them candidates of choice for potential investors. (There are also many firms that you and I think are great companies, but their financial performance is far from impressive.) Bring just a handful of them on the bourses and see the marketcap of the country shoot up by more than O2.5 lakh crore (See: page 28, What If They Were Listed?). So why don’t they list?

HCL Infosystems - Start Investing Now?

HCL Infosystems Ltd which was facing uncertainties in India regarding its contract expiry of Nokia mobile phones distribution, has come up with a surprise move of acquiring 20% stake in Dubai headquartered Techmart Telecom which distributes Nokia smartphones across Middle East and Africa.

The share sale agreement leaves space for HCL Infosystems to hike its stake to 51% in the future, which will, of course, amount to a takeover. Also, HCL Info which has built up one of the world's most extensive Nokia distributions - in India - is expected to deliver certain services to Techmart Telecom.

Unlisted firms on investors' radar

Brokers buy stock options from employees of companies planning IPOs.

With the markets on a high, a few investors and brokers are fancying their chances in the unlisted space. Brokers are scouting for companies likely to go public in the near future and have a large number of employees sitting on stock options.

Pilani Investments And Industries Corporation LTD (“PIIC”)

Company overview:-



Pilani Investment and Industries Corporation limited is an investment company under Birla Group. The major amount of income is from dividend from the investments. The company is holding shares in various companies and has been associated as promoter of companies like Grasim, Hindalco, Century Textiles, Kesoram Industries, Aditya Birla Nuvo Ltd, Zuari Inds etc. The equity shares of PIIC are listed on The M P Stock Exchange and The Delhi Stock Exchange Association Ltd. Further, as per the Delhi Stock Exchange officials, the trading on the exchange would start in a month or so. Pilani has a small equity base of Rs. 7.91 crs and is a consistent profit making and dividend paying company.

Bennett , Coleman And Company Limited

Bennett , Coleman And Company Limited was incorporated in 1892 by partners  Thomas .J. Bennett (  Then editor : The Times of India ) F.M. Coleman . In 1946 the company was acquired by the legendary industrialist Ram Krishan Dalmia . In 1948  , Ram Krishan Dalmia sold out the company to  the present group ,his son- in -law , Sahu Shanti Prasad Jain.


  To the best of my knowledge  ( please recheck ) as per the year ended 2007 , Bennett , Coleman And Company Limited had a


Share Capital of around Rs. 32 cr. 
Face value per Share - Rs. 10 /- 

General Reserves of Rs.3400 cr. 

Sales Rs.3300 cr and 

net profit Rs. 600 cr.

   ( Out of Equity of around Rs. 32 cr , around Rs. 30 cr is bonus issues ) 

Just imagine…

• How much can you make in 26 years by just investing Rs.10,000/- initially in any of
  financial instruments ?Take a wild guess ???
  Let us look at the real example…

Bharti Telecom Limited

       

 BHARTI TELECOM LTD  is   HOLDING CO OF BHARTI AIRTEL LTD  INDIA'S BIGGEST TELECOM CO IN PRIVATE SECTOR.

BHARTI TELECOM HOLDS AROUND 45.55% OF HOLDING IN BHARTI AIRTEL .....

GUJARAT NRE MINERAL RESOURCES LIMITED

1.  Gujarat NRE Mineral Resources Ltd (GNMRL), the fountainhead of the Gujarat NRE group, is focussed on Coal Mining, Met Coke production and Oil and gas exploration

2.  .Last year, post merger of eight other core investment companies of the group, GNMRL emerged as the controlling stakeholder in Gujarat NRE Coke Ltd (GNCL) with 33% holding

BF INVESTMENT HIDDEN VALUE

BF Investment Ltd. (BFIL) is a part of USD 2.4 billion Kalyani Group. BFIL was formed by demerging Investment Business of BF Utilities Ltd. by way of a Composite Scheme of Arrangement. Under the said business restructuring, Investment Business has been transferred to BF Investment Ltd