BNR Udyog Ltd. Detail
BNR Udyog Ltd. is in portfolio of Subramanian P. He is one of the top investors in India. It is a Conglomerate company engaged in carrying on medical transcription, construction and financial activities. The business operations of Company can be divided into three segments
- Medical Transcription
- Financial Activities (NCDEX)
The website of the Company is not working as of this writing. IT is not good sign for any Business Entity. Websites is critical for any business entity as it is face of the Company on Internet. I did not have good impression about BNR Udyog due to this very reason.
It carries the operations majorly in India and US. Company has divided operations into these two Geographical locations.
Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
BNR Udyog Ltd. Stock Performance
BNR Udyog made debut on stock exchanges at 7 INR mark.It mostly traded in range of 10 to 20 between years 2003 to 2013. It does have positive movement during 2003 to 2008 period but that global crisis halted the momentum and stock went into consolidation mode thereafter.
During 2014 to 2017 bull run the stock marched past to 50 mark. This was glory period for the Company as per stock price performance. But the correction in last phase of 2018 withered the Company and prices again touched near 10 marks.
If you see the absolute return from 2003 prices to 2018 end prices you will see a sorry story. Investors have not made much money in this counter. One can defend the company saying Investors have not lost money but anything which has not beaten Fixed Deposit is negative return in my honest opinion.
The dividend yield is attractive at current market price. But small companies may chose not to give dividend going forward. So you should not make investment decision based on Dividend yield alone.
BNR Udyog Ltd. My Opinion
BNR Udyog Limited is a small company. It operates in multiple segment. I personally do not like companies engaged into too many operations at a time. Engaging itself in too many operations diversifies the Company and it will be unable to focus on single sector.
It has not performed decently in last one decade or so. It has steady movement during these years. The sectors it operates are too generic as well except medical transcription.
The company has its eyes on Indian and US market. Medical transcription can be viewed as service industry where person records the medical details (either in voice records or texts).
US market is more important for Service based industry due to USD INR exchange rate difference. I like this segment of the Company but other segments like Construction and Financial activities concerns me.
I will not track this company as there is nothing unique about it. In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.