Came across this unusually priced company with cash in hand greater than total market cap

Came across this unusually priced company with cash in hand greater than total market cap

Recently came across this company called Transchem Ltd. which used to produce and process mushrooms at its plant. The plant has been shut down for a while and currently the main revenue source is earnings from its investments, deposits and loans.

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Current market cap of the company is less than 30 Crores with no debt, however the amount of cash on the balance sheet (as of end of FY23) itself is over 34 crores and it has also given short term loans to corporates of about 22.5 crore.

The company also earns about 4 crores a year via returns on the deployed loans and other interest income and spends about 2 crores on employee expenses and other fees and expenses.

A company with almost 60 crore of liquid assets trading at less than 30 crore valuation seems too good to be true. Is there anything I am missing here?

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https://preview.redd.it/s1hsvfgsk0sb1.png?width=1128&format=png&auto=webp&s=84d1ae6465ec0b7ca9af25e7342b84a2607b4bbb

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https://preview.redd.it/0g2kjz4fk0sb1.png?width=835&format=png&auto=webp&s=f17c8da05e0bfab44405f547f64d059026490416


View on r/IndianStockMarket by Aelin95


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