Why is The Bombay Burmah Trading Corporation Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 8.24% and Operating profit at 9.33% over the last 5 years
2
Flat results in Jun 26
3
With ROE of 16.5, it has a Very Expensive valuation with a 1.5 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.21%, its profits have risen by 7.3% ; the PEG ratio of the company is 1.2
4
Despite the size of the company, domestic mutual funds hold only 1.92% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 1.36% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.21% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is The Bombay Burma for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Bombay Burma
-17.33%
-0.52
33.27%
Sensex
-4.71%
-0.36
13.39%
Quality key factors
Factor
Value
Sales Growth (5y)
8.24%
EBIT Growth (5y)
9.33%
EBIT to Interest (avg)
13.02
Debt to EBITDA (avg)
1.49
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
1.90
Tax Ratio
25.30%
Dividend Payout Ratio
9.54%
Pledged Shares
0
Institutional Holding
10.49%
ROCE (avg)
46.08%
ROE (avg)
11.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
44
Price to Book Value
1.52
EV to EBIT
3.08
EV to EBITDA
2.78
EV to Capital Employed
1.60
EV to Sales
0.49
PEG Ratio
1.23
Dividend Yield
1.11%
ROCE (Latest)
50.30%
ROE (Latest)
16.49%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
PAT(Latest six months)
At Rs 644.04 cr has Grown at 26.99%
NET SALES(Q)
Highest at Rs 5,088.69 cr
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for The Bombay Burma
Profit After Tax (PAT) - Latest six months
At Rs 644.04 cr has Grown at 26.99%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 5,088.69 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)






