McDowell Holdings has stake in four companies out of which 84% stake is in United Breweries. 
Trade Investments:
Holding(%)
United Breweries Holdings
7.87%
United Breweries
4.21%
Mangalore Chemical
5.93%
UB Engineering
2.65%

Discount % (Yearly) based on Mcap
Rs cr







MKt Caps
United Breweries Holdings
United Breweries
Mangalore Chemical
UB Engineering
Value of MC Dowell Holding
Mc Dowell  holdings Mkt Cap
Discount%
2011
863.6
11734.5
388.1
103.6
587.8
89.4
0.85
2010
1850.55
4610.12
276.73
224.86
362.1
118.1
0.67
2009
504.48
2147.23
139.97
61.95
140.0
43.54
0.69




On the positive side there have been stake increase by the promoters through conversion of OCD's at a premium. Within six months they have increased their stake twice from 36.7% to 42.5%. The OCD's were issued on 25/03/11 and the first tranche was converted within a week of issue of  OCD. 
On calculation of MCap Discount, of McDowell Holdings and the value of holdings in the respective companies we observe the current MCap of McDowell Holdings at 85% discount. 



On the negative side the main underlying asset, which is 84% of  holdings i.e. United Breweries, is currently overpriced like a typical 
consumption play and further upside in the stock price of United Breweries may be limited due to lack of upside in underlying. 
Also, almost entire qty of underlying shares is pledged. Debt in other group companies like Kingfisher is very high which might affect the group image adversely.



Future catalyst: Vijay Mallaya might want to hold one promoter company instead of two currently, which might lead to further unlocking of value.