i feel as an investment BLIL makes sense because :
1) operating costs :BLIL as a company hardly has any associated operational costs which eat into the dividends it receives from BL, so the ownership layer per se does not diminish any value.
2) ownership value :on the other hand, on the basis of its holding in BL, every BLIL share represents a 0.45 proportionate ownership in BL stock
so if BL trades at 440, theoretically, BLIL should trade at 198., but the market values it @ 50% discount , which means effectively at current price, if one buys into BLIL, one buys BL @ 220.
3) dividend : BL has declared a Rs.13.50 ( last year Rs.9 ) dividend which translates into a dividend of around Rs.13.5 cr for BLIL & an effective EPS of around Rs.6.
assuming a 45% payout by BLIL like last year, BLIL investors should get around Rs.1.7 - 2 per share additional dividend when the board meets this week. ( they alreday paid re.1 interim )
overall, my beleif is BLIL is a good & cheaper proxy bet on BL.
lets wait for Basantjee's views.
jayendra
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
