Interestingly placed in the sector and seems pretty much an interesting bet with businesses ranging from tea,coffee,rubber, laminates.
Also possible Land Bank and one of its subsidiary companies Leila Lands holds Britannia Limited. As well as various subsidiaries under Bombay Burmah hold interests in other Wadia group companies. A detailed study on the same would give a fair idea. Current Market Cap of 550 crores is at a good discount to value of holdings and businesses.
Bombay Burmah Trading Corporation holds following interests in Wadia Group cos.
Investment (Rs Cr)
Bombay Dyeing 400
Britannia 910
Go Air 400
Total 1710
This is an old valuation of holdings in the co which i saw online. Although the structure of holding is through subsidiary companies so one will need to dig in little deeper to find more. But roughly the holding value should be 2-3 times the current market cap.
Stock seems underpriced at 400-450 levels.
The stock could give an upmove to 600-1000 in the next 1 years time and may even over perform. Technically a breakout on closing above 420 and dips to 360 a good buying opportunity.
The liquidity in the counter is extremely low so investors should take care with their exposures.The stock will test patience. Will update more in the weekend when i will have time to dig more into the stock.
Please do your own research.
Cheers,
Nooresh
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{ 18 comments… read them below or add one }
what a move ……………………………………………………………………………….
What a superb call on Bombay Burmah …. made a high of 464…… !!
….unfortunately i did not buy it !
Hi Asawari,
Yes todays move would be a technical run up. We need to see more of follow up buying coming in. Can look for an entry around 400-425 mark and on further dips.
Regards,
Nooresh
Sir, Bombay Burmah blasted !!!!
Manav,
The call is more with a long term view.
Regards,
Nooresh
Hi Nooresh,
Your stock selection is generally good but this time you have unearthed a real gem!!
The stock is grossly undervalued by the market and the increased volume today says that going forward the stock could get re-rated to its fair value of close to Rs.1000.
Thanks,
Sanjay
Hi Sanjay,
. Looks very interesting.
One needs to dig deeper into the Annual Report and Balance Sheet of the stock.
Well the reason for me getting bullish was also the technical bias as shown in the chart.
If you have done more research then let us know
Regards,
Nooresh
superb call on gati and bbtc keep it up
Hi Kunal,
Thanks hope you made some dough on it.
Cheers,
Nooresh
Are you sure that Associated Biscuits International Limited is held by Bombay Burmah Trading Corp.?
Had bot the scrip at 90 .. saw 40 or 60 odd on the stock for 2 years and then sold at 110 and was very happy about it at that time ….
Laterz hit almost 4 figures !!!!!
And now …. can’t muster the courage to get into it …..
(Had sent a reply email to you re the same BUT seems either u did not get it or some mistake in sending … )
Nooresh
aftr reading you blog i bought 100 shares @ 435, shud i hold or sell now..
Nidhi
Hi Nidhi,
If you are not a long term investor then book. Also read the reasons.
Regards,
Nooresh
very high PE -46 – a reason to worry
Hi Gaurav,
Well its a holding company.
I m not buy even 1 share of bombay burmaah but really so impressed by such type of analysis. In ur TA course we can learn such techniques & get handsome return!
He$H…
can tell me about nuvin fluorine & ajantha pharma
Hi Mahipal,
Navin Flourine looks a buy at 275