10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Wednesday, October 19, 2011

Bombay Burmah Trading Corporation Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis outlook,multibagger

Scripscan:Bombay Burmah Trading Corporation Ltd
BSE code:501425

Story:Bombay Burmah has got a very strong balance sheet and this is one reason that I like this particular stock, may be the stock would bore you from a longer term perspective also and it will be hobbling around at 400 to 500 odd mark and right now it’s trading at 450 odd levels. So I think one can take a call of 20% from next 8-12 month perspective.Now if I take a call from its balance sheet perspective it owns through its subsidiaries almost 51% in Britannia Industries. Current market cap of Britannia is 5600 odd mark. 51% roughly works out to be that Rs 2800 odd crore, the market cap is Rs 600 crore. As a holding company it warrants that 20% discount.So it’s fairly valued.Now take a call it’s exposure to Bombay Dyeing, it was almost 14% so again a safe bet. Now what interesting is that Britannia industries is available at a dividend yield of 1.6%, so similarly with Bombay Burmah. So they will be getting Rs 35-40 crore in terms of free cash flows to equities just through dividends through Britannia.Last year they sold their JV into the rubber JV. This year they have sold their sunmica division so there is some reorganization that is going into Bombay Burmah or let’s say Wadia group. So I think there is lot of potential even going forward because now if I take a call in their core business, which is their tea and plantations that is available in Tamil Nadu and Karnataka.They have got good presence and they have got good ability to generate free-cash flow to equity. So from fundamental perspective if I ignore the balance sheet value it will be somewhere around Rs 180-200 and on conservative side if I see the replacement value of this plantation business it again works out to be Rs 180-200, so Rs 400 plus the investment.People try to get into at Rs 380 to 400 because they have actually generated free cash flow of equity of close to Rs 165 crore. If I see this year Rs 100 crore of sunmica division and Rs 65 crore from JV ventures sell, so it’s a cash rage company with limited downside and a potential target of Rs 500. One can take a trading bet in this turmoil times.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner