KRBL- The King of Basmati rice

Despite the big rise in exports in Q4 - Rs.8071 Cr by value vs Rs.6136 Cr in Q4, FY17, KRBL has managed to shrink its topline from 912 Cr to 876 Cr in the same period.

07%20PM

The basmati rice export realisation is at a 2-year high (Rs.70 in Q4)

I think KRBL has conceded a lot of domestic market share - Otherwise I don’t see how they could have shrunk their topline when exports have grown by 32% to their target markets. My thesis was on domestic market share maintenance/growth but it looks like that this is not happening. They have still maintained good margins likely because of the export growth but lack of topline growth negates my thesis.

Disc: Exited a bulk of the position today.

2 Likes