KRBL Limited: Rice Suppliers to the World

Posted by Dynamic Levels
4
Finance & Investment
May 6, 2016
269 Views
May 05, 2016 - 04:33:20 PM

KRBL Limited

KRBL derives its name from its founder Khusi Ram Behari Lal, who founded the worlds most favoured Basmati brand way back in 1889 at Lyallpur currently known as Faisalabad in Pakistan. It is India’s first integrated rice producing company with a comprehensive product chain.

 

Brands:

  • Indian Gate
  • Variants : -Classic, Super ,Bab Al Hind ,Brown , Sella , Organic ,Variants ,South Indian Rice ,Long Grain
  • Doon
  • Nur Jahan
  • Indian Farm
  • Bemisal
  • Aarati
  • Unity
  • Lotus
  • Taj Mahal Tilla
  • Shubh Mangal
  • Badshah
  • Necklace
  • Lion
  • Al Wisam
  • Train
  • Al Bustan
  • Telephone
  • Southern Girl
  • Alhussam
  • Blue Bird
  • City Palace

 

Awards

  • 1196 - ‘Super Star Trading House’ for
  • 1997 -Largest exporter of Basmati rice, APEDA
  • 1998-99- Largest exporter of Basmati rice, APEDA
  • 1999-2000 - “Largest and Best exporter” by the Govt. of U.P, India
  • 2000 -2001 -Largest exporter of Basmati rice, APEDA
  • Le livre Guinness des records for the world’s biggest kabsa, Bahrain in 2002.
  • Golden trophy by FIEO for export excellence in 2002-03
  • 2002-03 - Export award for export promotion & quality
  • 2005 -Recognition of a Four Star Export House
  • 2005 -‘MERA BRAND’, by Consumer World Awards as India’s most preferred brand
  • 2006 -'INDIASTAR 2006' for excellence in Packaging in India
  • 2006 - ‘MERA BRAND’, by Consumer World Awards as India’s most preferred brand in 2006
  • 2007 -‘MERA BRAND’, by Consumer World Awards as India’s most preferred brand in 2007
  • 2007-2008 -CONCOR ‘Best Exporter’ North-central region
  • 2008 - ‘MERA BRAND’, by Consumer World Awards as India’s most preferred brand
  • PFFCASTAR 2008 for excellence in packaging for India Gate Window Metalized Pack with Mat Finish

 

Industry Analysis

(A) No Threat of Substitute Products

  • Basmati Rice is just 2% of total Rice Production in the World
  • Basmati Rice Grown only in India (70%) and Pakistan (30%).
  • Simple product – no hi?tech processing required / processed food.
  • Highest quality and high valued product, not commodity!

(B) Threats

  • No China competition / other countries threat – Grown only in India and Pakistan
  • No government / regulatory interference
  • Economy, war, global crop patterns etc – No major impact

(C) Hold on distributors

  • One of the Largest and established player.
  • FMCG category.
  • Trust with distributors –only 2 days of credit period to distributors.

(A) No Threat of Substitute Products.

  • One of the Largest and established player
  • FMCG category
  • Trust with distributors –only 2 days of credit period to distributors

(D) Hold on Farmers

  • R & D advantage – creator of 1121 variety
  • Only player to distribute seeds
  • Doing organic and contract farming

(E) Competition

  • Pricing Premium over competitors
  • New entrants – require huge marketing budgets and organizational management to manage entire supply chain

 

INVESTMENT HIGHLIGHTS

 

Leading Market Position

Best-in-Class Operations
  • World’s largest Rice Millers and Basmati Rice Exporters
  • India’s largest selling Branded Basmati Rice Company
  • Strong Brand presence through collaborations with global retail chains.
  • Leading position in Saudi Arabia’s market? world’s largest Basmati Rice market.
  • Largest contact farming basmati rice in the world.
  • Exports to 73 Countries.
  • Largest manufacturer of Basmati Rice Seed.
  • India’s first fully integrated and scalable rice company.
  • Rice manufacturing capacities of 195 MT per hour.
  • Good realizations – export price per MT commands a premium of more than 18% over the Industry average.
  • Wide marketing network with presence at 6,90,000 retail outlets spread over all towns and cities of the Country.
  • 35% basmati seeds in India are provided by KRBL

Leading Brands

Strong Financial Performance
  • “India Gate”, the flagship brand of Company, is the topmost selling rice in the Branded Rice segment, both in India and Overseas market.
  • India Gate leads suite of well recognize and leader brands with continuous focus on improving visibility via ATL & BTL activities
  • Brand include – India Gate, Taj Mahal,Doon, Nur Jahan and many more.
  • 25% share in the Branded Basmati Rice sale in exports market.
  • More than 30% share in the Branded Basmati Rice sale in domestic market.
  • Short?term loan of the company rated [ICRA]A1+ by ICRA, indicating highest credit quality in the industry.
  • Long Term Loan of the Company under (ICRA) AA? byICRA, indicating high degree of safety.
  • Net Worth of the Company increased from Rs. 1,045crores in FY 2014 to Rs. 1,325 crores in FY 2015.

 

EXCHANGE SYMBOL KRBL
Current Price * (Rs.) 255.50
Face Value (Rs.) 1
52 Week High (Rs.) 249.80 (04-May-16)
52 Week Low (Rs.) 139.50 (07-Sep-15)
Life Time high (Rs.) 249.80 (04-May-16)
Life Time low (Rs.) 1.02 (29-Jan-02)
Average Daily Movement [ADM] 8.77
Average Volume [20 days] 292915
1 Month Return (%) 11.64
P/E Ratio (x) 18.44
Book Value 56.28
Market Cap 5731.74 (Cr)
% of Promoter holding pledged 0

 

Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15
Promoter and Promoter Group (%) 58.81 58.81 58.81 58.81 58.81
Indian 58.81 58.81 58.81 58.81 58.81
Foreign 0 0 0 0 0
Institutions (%) 6.52 5.28 5.20 6.03 6.05
FII 5.20 2.03 5.17 5.50 6.03
DII 1.32 3.25 0.03 0.53 0.02
NonInstitutions (%) 34.66 35.91 35.99 35.16 35.13
Bodies Corporate 0 0 2.04 1.90 1.85
Others 34.66 35.91 33.94 33.26 33.29
Custodians 0 0 0 0 0
Total no. of shares (cr.) 23.54 23.54 23.54 23.54 23.54

 

1 year Weekly Chart

 

The stock made a 52 week high of 255.90 on 05.05.16 and investment in the stock with a short to medium term view can give returns of further 10-15% from the CMP of 255.

 

Dynamic Levels recommends KRBL Limited as one of our Top 500 shares.

To get more Support and Resistance levels of the share please visit KRBL Share Price Forecast
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