STEL Holdings Limited is an India-based investment holding company whose principal activity is to hold investments in group companies. It operates as a Core Investment Company (CIC) and is a part of the esteemed RPG and RPSG group enterprises, one of the largest business conglomerates in India. The company invests in a diversified portfolio of quoted and unquoted securities of RPG and RPSG group companies.
STEL Holdings Ltd was incorporated in 1994, initially to carry on the business of export of tea and other related activities. The company underwent a significant reorganization in 2010, which involved the demerger of the Investment Undertaking of Harrisons Malayalam Limited into Sentinel Tea and Exports Limited. Following this, to better reflect its new business activities, the company initiated action to change its name and objects to align with its role as an investment company.
The main source of income for STEL Holdings is dividends received from its investee companies. The company's investment portfolio is predominantly concentrated in companies within the RPG and RPSG groups, which are engaged in diverse sectors. These include power generation and transmission, auto tyres & rubber products, electric utilities, carbon black, pharmaceuticals, fast-moving consumer goods (FMCG), and various other industries.
STEL Holdings employs an investment approach that combines both value and growth strategies. This allows the company to capitalize on opportunities within its group companies, which generally have a history of strong operating and financial performance across their respective sectors.
STEL Holdings currently commands a market capitalization of ₹782 crore. For the full financial year 2024-25, the company reported revenue of ₹21.9 crore and a profit of ₹15.9 crore. The company also states that its current investments hold a market value exceeding ₹500 crores across its various RPG and RPSG group companies.
In the quarter ended December 2024 (Q3 FY2024-25), the company reported a net profit of ₹0.09 crore, which marked a 10.00% decline compared to ₹0.10 crore in the previous quarter ended December 2023 (Q3 FY2023-24). Sales remained constant at ₹0.30 crore during both quarters.
The audited results for FY2024-25 were approved with a profit of ₹15.87 crore. This indicates a robust annual performance for the company despite minor quarterly variations.
• Market Capitalization: ₹782 crore (as of latest data)
• Revenue (FY2024-25): ₹21.9 crore
• Profit (FY2024-25): ₹15.9 crore
• Q3 FY2024-25 Revenue: ₹0.30 crore
• Q3 FY2024-25 Net Profit: ₹0.09 crore
• Promoter Holding: 69.5% (as of Dec 2024)
• Price-to-Earnings (P/E) Ratio: 48.4
• Book Value: ₹950
• Stock Trading at: 0.45 times its book value
• Return on Equity (3-Year Avg): 1.16%
• 52-Week High Share Price: ₹604.95
• 52-Week Low Share Price: ₹281.00
The company's investment strategy focuses on maintaining a strategic presence in group companies within the RPG and RPSG ecosystem. This provides investors with diversified exposure across multiple crucial sectors including power, pharmaceuticals, consumer goods, and industrial products. Doon Dooars Plantations Limited is a subsidiary of STEL Holdings Limited.
The promoter holding in STEL Holdings Ltd has shown an upward trend, increasing to 69.15% as of December 2024 from 66.19% as of March 2024. This notable increase in promoter shareholding underscores strong confidence from the controlling shareholders in the company's long-term prospects and investment strategy.
While the company has delivered a modest sales growth of 6.15% over the past five years, its revenue has grown at a yearly rate of 13.48% over the same period, significantly outperforming the industry average of 6.21%. However, the company has a relatively low return on equity of 1.16% over the last 3 years.
STEL Holdings Limited is an almost debt-free company, which significantly strengthens its financial position. While the company consistently reports profits, it currently has a dividend yield of 0.00%, indicating that it is not paying out dividends. This suggests that the company is retaining its earnings for reinvestment opportunities within its diversified investment portfolio, aiming for long-term capital appreciation rather than immediate income distribution.
STEL Holdings Limited functions as a strategic investment vehicle within the RPG Group ecosystem, providing investors with exposure to a diversified portfolio of group companies across multiple sectors. Despite facing challenges in terms of sales growth and current dividend distribution, its strong promoter backing, debt-free status, and focus on a combined value and growth investment strategy make it a noteworthy consideration for investors seeking exposure to the broader RPG Group portfolio and its long-term potential.
