KRBL- The King of Basmati rice


(Marathondreams) #332

News report below suggests that Iran has become largest importer of Basmati rice in FY 18 taking over from Saudi Arabia.

https://economictimes.indiatimes.com/news/economy/foreign-trade/basmati-rice-exports-to-grow-strong-in-fy2018-icra/articleshow/63381150.cms

Hence US missile attack in Syria followed by rhetoric from Trump about Russia and Iran is bringing back possibility of US sanctions on Iran. In that case, India’s Basmati export can come under pressure. I believe this is the reason for softness of stock prices of all rice exporters like KRBL (although LT foods and Chamanlal Setia are up today)


(atulgupta80) #333

I understand KRBL is domestic consumption driven story. Share of export to total sales is falling.


(ramdhawad) #334


(ramdhawad) #335

Found this product on Costco shelf in the U.S. Please notice how it says ‘Grown in the U.S’ on top right corner. Isn’t that non compliance to the GI tagging that Basmati enjoys ? How / which body ensure the Basmati tag is not used by any other regional grown rice ? Next to this was Royal Basmati, royally claiming itself as the nos one Basmati rice in USA.


(Marathondreams) #336

It’s good to look back what management said and what they have done. The videos attached below from 2015

Discl - taken tracking position in last one week


(SD007) #337

Shareholding statement for March 2018

http://www.bseindia.com/corporates/ann.aspx?scrip=530813&dur=A&expandable=0

Cannot see the 2.7% stake by Pabrai funds here. Did he exit ?


(phreak) #338

If you see the shareholding, the only major change is the Balsharaf’s have reduced stake to about 3% (from 6.38%). This is about 73 lakh shares sold. Pabrai Funds have bought about 64 lakh shares. Although, Pabrai Funds is not listed in Shareholding, you can see that there is Clearing house (INDIAN CLEARING CORPORATION LIMITED) which is holding about 65 lakh shares. I think this could be shares of Pabrai Funds which were yet to be transferred as of 31st March, There is hardly any change in retail holding and Anil Kumar Goel’s holding is completely intact.

But then this brings the question of who did the selling in March. Did one of the Goels sell and then buyback before end of quarter because of LTCG? Or did Pabrai have buyer’s remorse and so dumped the shares after a month of buying? I don’t how clearing houses work and if they can hold a client’s shares for nearly 2 months. Can someone shed some light? It could also be the other 9 lakh shares (73 - 64) of the Balsharafs ended up in the open market in March.


(shreys) #339

Clearing houses are intermediaries between buyers and sellers. They become the buyer to every seller and the seller to every buyer. This reduces risk for the concerned parties and enhances confidence.

It increases the faith of the concerned parties by assuring every buyer that shares will be delivered and assuring every seller that money will be credited to their account.

If either party(buyer or seller) doesn’t keep their end of the bargain the clearing house will intervene and facilitate the deal.
For example-
a) If a buyer refuses refuses to pay cash the clearing house will pay the seller.
b) If a seller refuses to deliver shares the clearing house will deliver shares.

The clearing house reduces risk by demanding margin.
In most cases deals are concluded in 3-4 working days.

In this case I’m speculating so please excuse me if I err-
Is it possible that Mr. Pabrai’s fund didn’t buy the shares and lost the margin deposited. The clearing house stepped in and acquired shares of the seller and they’ve held on to it.

Second possiblity: Mr. Pabrai sold shares a few days before 31st March and in the meanwhile the clearing house was in possession of shares.

Third possibility: There’s a dispute and in the process of resolution shares are in the custody of the clearing house.


(harjotsingh87) #340

Found this in Walmart Canada, if you look closely, these are imported and packed in Canada. I am sure it must be the case with Della also. It would be interesting to know who the suppliers are!


(ramdhawad) #341

That was my initial thought too. But look closely at the top right corener of the pic I posted. It says “ Grown in the USA “ . I did check at the back and dint find any supplier info.


(Gothamcapital) #342

Can someone tell me the production in 2017.I cannot find the production in Mt in the annual report 2017.Your help will be appreciated.


(rajput.delhi) #343

2016 - 591k mt (incl one-time 95k mt to Iraq)
2017 - 589k mt (no one-time to Iraq)
Growth excl Iraq order - 17%


(Gothamcapital) #344

source for the production details??


(rajput.delhi) #345

Company concalls :slight_smile:


(Gothamcapital) #346

Can u please give me the source with page number.In 2010 their milling production was 324734 MT (i.e 3.25 lac MT) ,source annual report 2010 .On the other hand you are saying it is 594 lac MT in 2017.Something is amiss.


(rajput.delhi) #347

Corrected the typo above as 594k not lac. Apologies.
And i don’t hv call transcript…these are from my notes from listening to their calls. Usually, these figures are given in the beginning of the call.

Cheers
RR


(Gothamcapital) #348

Makes sense now as the max milling capacity is (195MT per hour)(24 hr)(365 days) = 17 lac MT per year .So the company is operating at a third of its maximum production.I would say the real maximum prod is probably around 8-9 lac MT per year .So probably the company is near its limits and needs to construct milling capacities.


(phreak) #349

Looks imminent. Fingers crossed


(s) #350

It has been consolidating for too long…Most of the companies after march fall are back to their highs or breaking those high. KRBL is stuck and if the markets fall again will be interesting to see if it holds the current floor.


(Kumar Saurabh) #351

Buddy what are settings u ve taken?
This is what I am getting (I am a beginner in TA)
This is daily plot on 18,50 and 200 EMA with volume , A/D and ROC

The same at weekly level

Weekly looks interesting to me but need some volume activity else do not sense anything.
However, Jan’18 Basmati rice export was 38% up YoY. So, if fundamentally nothing looking bad and technically at least on weekly level 18 EMA kissing 50 EMA again and distribution and rate of change both seems to changing direction but not yet confirmed totally, probability is may be we will see interesting time . May be some more wait. May be till results lets see. Any idea of Feb and March export nos? That would confirm