Bombay Burmah: still an undervalued share

Guys BBTC is the second oldest company listed on the stock exchange with history dating back from 1850's. It is the flagship company of Wadia group and trades in Tea, coffee, cardamom and dental products but what makes this company interesting is the fact that it has 6 subsidiaries and 46 sub subsidiaries and 6 associates. It also holds around 14% stake in bombay dyeing and also indirectly holds large chunk of share in britania. Apart from that the company also has huge land bank valued in billions near mumbai and various coffee plantations. The company has already become a five bagger in prev one year but even if you discount its investment to 60% then also the Fair value of share remains at 900/-. Guys just look at its consolidated financials to know...it is still trading at huge huge discount having renowned promoters. Look for this stock and play with whole wadia pack.

 

Yes, its books look pretty nice. Specially the consolidated cash flow.

I think Rs 900 is a bit biased target.

25-30% upside can be expected

 

the target price of 900 is given by g chokalingam sir who is considered to be one of the best stock pickers and gives lots of emphasis on valuations. trust me he is very conservative and his stock picks very much agree with the fundamentals. i will attach his report in a day or two. 900/- was the fair value i wrote and it should really hover around that price in a year or two.

 

Point is not 25% or 50%... It can even go higher than Rs 900.

Actual Fact of the matter is who will stay invested and who has the patience

I see that the stock has gone up by 4 times within a year. Correction may also take place.

 

if you are a long term investor then you ought to have patience and correction shall be used as a opportunity to accumulate, not only BBTC but any share if it has good fundamentals and future. Casw in point JB chem...which surged like anything...jus before 2 mnths experts like mr. kohli nd choka sir were asking ppl to accumulate and it traded in 150 range and today it is 250. so correction in any given stock is no aberration and it is quite common. The imp point is are you buying a stock with good fundamentals and potential? Importantly all the advisors and theories of stock market has proven that patience is also important apart from conviction.