VN Research & Consulting
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds


Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Go
Feedback
You are here : IndiaNotes >> Research & Analysis >> Companies >> Bombay Burmah Trading Corporation Ltd. >> Research

Bombay Burmah Trading Corp: Attractive bet, buy

KRChoksey | 16 Dec, 2010  | Follow Author | Add to my Favourites 
  • Rate this article
    (Average Rating 0.0 Based on 0 ratings)


Huge Value unlocking from Quoted & Un-quoted Investments: BBTCL through its Mauritius arm, Leila Lands has acquired 100% of Britannia Brand from Singapore based Danone Asia. Leila LandsRs indirect shareholding in Britannia Industries, increasing from 25.48% to 50.96%. With this acquisition, Britannia Brand has now become an indirect subsidiary of BBTCL and its arm, Leila Lands. As a result of which the Quoted Investment Portfolio of BBTCL increased by Rs. 2465 crs.

Considering the Direct & Indirect Quoted Investment Portfolio of BBTL, we arrive at the Intrinsic Value of Rs. 2098/Share of BBTL. Assuming a Holding Company Discount Rate of 50%, we arrive at a fair value of Rs. 1049/Share which against a CMP of Rs 424/Share, BBTCL looks highly attractive investment opportunity.


Outlook

BBTCL at a CMP of Rs. 424/Share, is available at a fraction of its fair investment value considering its quoted & unquoted investment portfolio. We value the company applying an aggressive holding company discount of 70% on the intrinsic valuing the stock at Rs 629/share exclusive of BBTCL’s core business valuations. We recommend our Investors a Strong Buy with a 12-month price target of Rs 629/ Share and an upside potential of 48%.


  Read full report Click here to read the full report

logo
BSE
933.65 +16.65
(1.82%)
NSE
930.80 +12.45
(1.36%)
Read More



Technical Calls

What are technical calls?


Have a question?

Rakesh Sethi
CEO of 3M Team Security Services - 3M Team Security Services