National Investment Trust [NIT]

National Investment Trust is an investment company which had two major investments; namely a 15% shareholding in the State Investment Corporation Ltd (SIC) and a 12% shareholding in the State Insurance Company of Mauritius Ltd (SICOM). Besides these investment, the company also acts as CIS manager to eight in-house funds. The company disposed of its investment in SIC for a total consideration of Rs 423m.

Its last published accounts for the nine months’ period ending 31st March 2017 shows total Assets of Rs 971.78 m. The NAV of NIT is Rs 35.28 while its market price is Rs 25.30. NIT has increased its dividend pay-out over time as shown below:

Year 2012 2013 2014 2015 2016
Dividend Yield (%) 2.1 2.7 3.0 3.8 5.2


A more accurate valuation of the company could see its NAV much higher. We can recall its attempt to sell its SICOM shares to the National Pension Fund for Rs 450m (Cautionary Announcement dated 08 April 2014).  SICOM’s PAT for the financial year 2016 was Rs 412m and that of the previous year was Rs 455m. The average market PE for Insurance companies listed on the stock exchange of Mauritius is 13X. If we base our valuation of NIT’s holding in SICOM on the above, it would increase NIT’s NAV. NIT also manages eight in-house funds which bring an approximate combined revenue of Rs 9.76 m received as management fee and Rs 4.00m as exit fee. The NAV does not take into consideration the fund management segment.

Based on its attractive price to NAV and future developments, we consider NIT as a good buy.

Note: The Fund already has exposure to NIT and may alter its position at any time depending on the market conditions.

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