Stara Planina Hold, the holding with largest exposure to heavy machinery industry via public listed subsidiaries, is a cheaper stock than its companies, concluded ELANA Trading analysts in the latest corporate profile.
Stara Planina Hold has assets in the machinery, electrical engineering, cosmetics and textile industries. The two biggest subsidiaries of Stara Planina Hold are the public listed companies M+S Hydraulic (5MH) and Hydraulic Elements and Systems (4HE). They represent 57% of the Holding’s assets, produce hydraulic systems and supply to leading manufacturers in Europe and USA. Both subsidiary stocks are among the favorites of Bulgarian investors.
According to the research report, Stara Planina Hold has a solid balance sheet and is a regular dividend payer. However, its shares are usually traded at lower multiples when compared to its subsidiaries.
Read in detail why the holding is undervalued in the corporate profile of Stara Planina Hold including analysis of its subsidiaries.