Great Findings buddy. Have Invested already in KRBL at 285. Somewhat same risks I assumed.
As per my calculations, there’s a 90% chance that they would be doing around 7000 crores of business in FY 25-26 with approx 840 Cr of PAT. Even if Saudi Arabia Issues Persist. Will explain reasoning in Detail.
Which I believe would bring some positivity in Market and value the company at a PE of 15 (least)
Which would be able to give 80% return on the current share price.
Making the effective share price at 538 around July of Next Year or even earlier.
If it still goes wrong, I will be holding this stock for longer run. As I believe They have a great brand in a growing market.
Connect to me over Call at 8800561659 if I turn out right.
Looking out for a Munger to my Buffet.
P.S : KRBL is not a Lollapalooza I believe but just an undervalued stock. So till I find my Lollapalooza, this is my pick.
One Upcoming Weakness : They are going to use the Brand India Gate for Edible Oil. I believe this has risk of diluting the brand in the minds of consumer.
They can effectively do what big FMCG companies do. They should aquire existing brands and then use its own operational advantages and distribution to create indigenious brands under the head of KRBL.
Using same brand across FMCG categories is a bad move. Rarely any good company does it.
Thanks for sharing such great insights on a less talked about business like KRBL.
I have studied their business in detail and have arrived at the conclusion that the past 5 year financials makes it look like a dud business but if one goes in detail, their domestic business has been doing quite well and they have gained market share too.
Their exports business has faced significant challenges and has reached revenues last seen in 2010. I think the business bottomed out in FY25 and started to turnaround.
There are multiple positive factors which should improve the financials of the company. They are as follows:
Resuming of operations in Saudi market to increase overall sales growth as well as margin picture.
Gross Margin impacted by high cost paddy procured in recent years coming to an end and reversal to start from FY 26.
On a conservative basis, I expect the business to achieve revenue of 7500 cr & PAT of 750 cr in FY 28 and expect the stock to trade at 16x PE multiple effectively making it doubler over 3 years.
Great Findings buddy. Have Invested already in KRBL at 285. Somewhat same risks I assumed.
As per my calculations, there’s a 90% chance that they would be doing around 7000 crores of business in FY 25-26 with approx 840 Cr of PAT. Even if Saudi Arabia Issues Persist. Will explain reasoning in Detail.
Which I believe would bring some positivity in Market and value the company at a PE of 15 (least)
Which would be able to give 80% return on the current share price.
Making the effective share price at 538 around July of Next Year or even earlier.
If it still goes wrong, I will be holding this stock for longer run. As I believe They have a great brand in a growing market.
Connect to me over Call at 8800561659 if I turn out right.
Looking out for a Munger to my Buffet.
P.S : KRBL is not a Lollapalooza I believe but just an undervalued stock. So till I find my Lollapalooza, this is my pick.
One Upcoming Weakness : They are going to use the Brand India Gate for Edible Oil. I believe this has risk of diluting the brand in the minds of consumer.
They can effectively do what big FMCG companies do. They should aquire existing brands and then use its own operational advantages and distribution to create indigenious brands under the head of KRBL.
Using same brand across FMCG categories is a bad move. Rarely any good company does it.
Thanks for sharing such great insights on a less talked about business like KRBL.
I have studied their business in detail and have arrived at the conclusion that the past 5 year financials makes it look like a dud business but if one goes in detail, their domestic business has been doing quite well and they have gained market share too.
Their exports business has faced significant challenges and has reached revenues last seen in 2010. I think the business bottomed out in FY25 and started to turnaround.
There are multiple positive factors which should improve the financials of the company. They are as follows:
Resuming of operations in Saudi market to increase overall sales growth as well as margin picture.
Gross Margin impacted by high cost paddy procured in recent years coming to an end and reversal to start from FY 26.
On a conservative basis, I expect the business to achieve revenue of 7500 cr & PAT of 750 cr in FY 28 and expect the stock to trade at 16x PE multiple effectively making it doubler over 3 years.
P.S : Invested in the stock