Bharat Nidhi Unlisted Share
Buy - ₹13100.00
Sell - ₹15950.00
About Bharat Nidhi Unlisted Share
Bharat Nidhi unlisted shares represent ownership in Bharat Nidhi Limited, a legacy entity founded in 1942 as Bharat Bank. Transitioning to media distribution post-1951, the Delhi-based company now focuses on distributing newspapers (like The Times of India) via its partnership with Bennett, Coleman & Co. Ltd (BCCL) and manages low-risk investments. Delisted from stock exchanges, its shares trade on NSE’s Dissemination Board, appealing to investors seeking stability through diversified revenue streams.
Business Segments
- Media Distribution (Core Business):
- Exclusive distributor for BCCL publications in Delhi-NCR.
- Ensures last-mile delivery of The Economic Times and other periodicals.
- Strategic Investments:
- Allocates surplus funds to debt mutual funds, fixed deposits, and low-risk instruments.
- BCCL Stakeholding:
- Holds equity in BCCL, India’s largest media conglomerate, enhancing financial stability.
Financial Highlights (2022–2024)
- PAT Surge via Investments:
- PAT skyrocketed to ₹504 crore (2024) from ₹217 crore (2022), fueled by ₹513 crore “other income” (likely investment gains).
- Declining Core Revenue:
- Operating revenue dropped 58% from ₹33 crore (2023) to ₹14 crore (2024), highlighting distribution challenges.
- Zero Debt, High Reserves:
- Reserves grew to ₹4,122 crore (2024) with no borrowings, ensuring risk-averse capital structure.
- Asset Growth:
- Total assets rose 11% from ₹3,666 crore (2023) to ₹4,125 crore (2024), driven by investments.
- EPS Volatility:
- EPS fluctuated from ₹748.28 (2022) to -₹137.93 (2023) and ₹1,762.24 (2024), reflecting reliance on non-core income.
- Negative Operating Margins:
- OPM remained negative (-30.71% in 2024) due to stagnant distribution revenue and rising costs.
Bharat Nidhi Unlisted Share Considerations
Bharat Nidhi unlisted shares attract investors seeking stability through its BCCL partnership and debt-free status. However, key risks include:
- Core Business Erosion: Declining distribution revenue and negative EBITDA.
- Investment Dependency: PAT driven by volatile “other income,” not operations.
- Illiquidity: Unlisted shares trade on NSE’s Dissemination Board with limited liquidity.
Valuation Drivers:
- BCCL Stake Value: Appreciation in BCCL’s equity could boost reserves.
- Dividend Policy: Potential payouts from ₹4,122 crore reserves (2024).
- Cost Rationalization: Reducing employee/other expenses to improve margins.
Key Metrics for Investors:
- Reserves Growth: Sustained growth in reserves (₹4,122 crore in 2024).
- BCCL Performance: Profitability of BCCL impacts Bharat Nidhi’s investment returns.
- Revenue Revival: Stabilizing distribution revenue through new contracts.
Disclaimer*This research has been conducted for investment purposes based on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We do not assume any responsibility for financial losses or inaccuracies in the data provided.
Pros
- Strong BCCL Partnership – Strategic distributor and shareholder in India’s leading media house.
- Debt-Free Balance Sheet – Zero borrowings and ₹4,122 crore in reserves ensure financial stability.
- Low-Risk Investment Strategy – ₹3,992 crore allocated to stable, low-risk instruments.
Cons
- Declining Revenue – Revenue dropped from ₹33 crore (2023) to ₹14 crore (2024), raising concerns.
- Weak Core Operations – Negative EBITDA (-₹4.3 crore in 2024) from distribution business.
- Dependence on Other Income – PAT largely driven by non-operational income instead of core business.
