With a 120 year heritage and an existence since 1889, KRBL Ltd, is India’s first integrated rice company with a comprehensive product chain.
As world’s largest Basmati exporter, KRBL has its wings spread across all the Basmati eating regions like Asia, Middle East, Europe, USA, Canada and Africa.
Engaged in the business of marketing agro and grains processing, with a rice milling capacity of 195 MT/hour, the largest in the world. Today it’s the world’s largest Basmati Rice exporting company. KRBL is certified as BRC for meeting the requirements of Global Standard for food safety issued by SGS
Net Profit of this company has increased from 46 Crores(March 2009) to 255 Crores(March 2014). Company has a good consistent profit growth of 40% over last 5 years. ROE for last 10 years on an average is more than 19%.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs13.74 and Rs 15.05 respectively.
Net sales and PAT of the company are expected to grow at a CGAR of 19% and 40% over 2013 to 2016E respectively
KRBLs futuristic approach has enabled it to strategically foray into other products and synergistic business, with power emerging as a strong revenue driver. A strong procurement network of farmers and quality focus, continuously steered by the R&D network, are among the major drivers of the Company’s sustained growth.
At the CMP of Rs 175.35 one can safely add it to the portfolio with medium to long term view with a target price of 220 to 230 in next 9 to 12 months.