Industrial and Prudential Investment Company, as its name
implies, is an investment company.
It appears to hold investments for the long-term and
dividend income dominates its earnings stream.
It owns a widely diversified list of equity and mutual fund units
amounting to over 300cr in market value.
Its largest position appears to be in KSB Pumps, which
amounts to 10% of its total portfolio by market value.
The income is overwhelmingly constituted of dividends on
long-term investments, which has been steadily rising over the last five years
– amounting to over 6cr currently, thereby contributing to a steady increase in
reported net worth over the same period.
It is unlikely to realise large capital gains during periods
of market exuberance if it continues to stick to long holding periods
regardless of market conditions.
Furthermore, it is exposed to market declines if it intends to liquidate
portions of its portfolio in the short/medium term, which appears unlikely in
any significant manner.
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