Technical Analysis of Indian Equities by Nooresh

Small Cap Coverage – Bombay Burmah Trading Corporation

BombayBUrmah

 

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

Article by Nooresh Merani

Nooresh has written 2569 articles.

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{ 18 comments… add one }
  • raj July 22, 2010, 14:24

    what a move ……………………………………………………………………………….

    Reply
  • Asawari I. July 22, 2010, 14:47

    What a superb call on Bombay Burmah …. made a high of 464…… !!

    ….unfortunately i did not buy it !

    Reply
    • nooresh July 22, 2010, 19:01

      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

      Reply
  • Manav July 22, 2010, 15:01

    Sir, Bombay Burmah blasted !!!!

    Reply
    • nooresh July 22, 2010, 19:00

      Manav,

      The call is more with a long term view.

      Regards,
      Nooresh

      Reply
  • Sanjay July 22, 2010, 16:23

    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

    Reply
    • nooresh July 22, 2010, 18:59

      Hi Sanjay,
      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 :). Looks very interesting.

      Regards,
      Nooresh

      Reply
  • kunal gosar July 22, 2010, 20:58

    superb call on gati and bbtc keep it up

    Reply
    • nooresh July 24, 2010, 02:05

      Hi Kunal,
      Thanks hope you made some dough on it.

      Cheers,
      Nooresh

      Reply
  • Vishal July 24, 2010, 23:07

    Are you sure that Associated Biscuits International Limited is held by Bombay Burmah Trading Corp.?

    Reply
  • Murtaza July 26, 2010, 11:16

    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 … )

    Reply
  • Nidhi July 26, 2010, 18:51

    Nooresh

    aftr reading you blog i bought 100 shares @ 435, shud i hold or sell now..

    Nidhi

    Reply
    • nooresh July 26, 2010, 23:18

      Hi Nidhi,
      If you are not a long term investor then book. Also read the reasons.

      Regards,
      Nooresh

      Reply
  • Gaurav July 29, 2010, 11:19

    very high PE -46 – a reason to worry

    Reply
    • nooresh July 30, 2010, 14:45

      Hi Gaurav,

      Well its a holding company.

      Reply
  • He$H August 4, 2010, 16:37

    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…

    Reply
  • great research September 21, 2010, 19:35

    can tell me about nuvin fluorine & ajantha pharma

    Reply
    • nooresh September 22, 2010, 01:03

      Hi Mahipal,

      Navin Flourine looks a buy at 275

      Reply

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