dear jaggis
a simple calculation - i will tell as far as tata chemical is concerned.
Take their latest balance sheet which is audited:
Add their investments and get the market value: It is almost equal to a mutual fund. Check their other income. There are two ways of looking at it.
One pessmist will say that function of the company and profitability cannot be determined by their other income
An optimist says: Even they do not function properly- the company is safe due to their investments.
I am holding tata for quite long time and made a big buy during march at 98.00 can you believe it.
It is much below the book value.
KEEP ACCUMULATING: As and when it comes down (sure- there is a oscilation of five percent monthly - up and down- also do some trading and increase your holdings from the profit)
I also started buying at 105 and my averager at present is about 170. I like the company since it is regularly paying good dividend, has a good cash flow and good fundamentals. If the falling income from core business continues, how long can other investments hold it up. It`s OK for one or two quarters but not for longer.
Investments: As others here have pointed out..its investment portfolio is very interesting and provides a base/bottom support to the valuation.
Core business: in H2 CY 2008 and CY 2009 was badly hit on the soda ash side in terms of margins. This business is coming back: it was surprising to hear about the soda ash production for CY 2010 being sold out.
Fertiliser capacity being added...change over to gas will enhance profitability.
Bottomline: they have come through a very tough time globally and now in FY 10-11 (ie March FY 2011 which is next year) things will go flying for them.
| NIFTY 
