Basmati rice is 2-3 year cycle of demand supply mismatch. So, m sure in future , you will get your opportunity . Would suggest to go through all icra reports on basmati rice n also try to get hold of export data for last 5-6 years to understand how this cycle plays. Of course, KRBL being a brand is relatively less prone to cyclic ffect ,neverthless, it gets reflected. The latest up cycle has started during March 17 after 2 years of lull n hence expected to continue for some more time . Disc : invested in theme but not in krbl
Basmati price has increased in international markets by 20%-25% in last one month after Iran has floated tender for importing 30000 tonnes of basmati rice from India.KRBL is India’s largest exporter of premium basmati rice with more than 30% share in total exports.KRBL is zero debt company & has not purchased paddy agressively this season because they already have surplus old stock purchased at low prices, this year paddy was expensive due to lower production. At current price of ₹640 market capitalisation is ₹15000 cr.
dont go just by his words…check his actions too…
I remember he bought few yrs back j&k & south ind bank along with rain ind…
but booked loss in both banks…he must be experimenting smthng new this time
KRBL did not purchase paddy this winter as it is costly this year. They have old paddy to use to make rice. May be this smart move of them will pay in disproportionate profits this year. I am very weak in accounting, I don’t know if this price difference is already there in profit loss statement of Dec 17. I guess Pabrai is discerning this.
KRBL has always commanded better operating margins than competition. This justifies premium valuations. Over the years, KRBL has increased its margins significantly; OPM was 14.2% and NPM was 7.2% in FY12-13, which has expanded to 20.6% and 12.7%, respectively, in FY16-17. While most players are trading in Basmati rice, KRBL has focussed on end to end integration which results in superior performance versus competition. Valuations seems stretched at this moment but the stock is definitely worth premium multiples. Disc: Invested.
Hi - can anyone please share or point me to KRBL’s Quarterly Earnings Conf Call transcript? There is audio version for the call on researchbytes - but prefer to read it. Thanks.
No it is unique product of north indian peninsula. Even in North India, Dehradun Banaati is the best. I am Banaati grower. China can not create quality, the aroma.
