bbtc share price analysis

bbtc share price analysis

bbtc share price analysis


bbtc share price analysis




bbtc is known as Bombay Burmah trading corporation.bbtc is a 150-year old company. bbtc is the oldest listed company.bbtc has various business segments like a plantation, auto electric component, healthcare, real estate, etc. bbtc subsidiaries companies are 
  1. Britannia Dairy Holdings Private Limited
  2. AFCO Industrial & Chemicals Ltd
  3.  Snacko Bisc Private Limited, Dental Products Of India Ltd
  4. Leila Lands Sdn Bhd, Britchip Foods Limited
  5. Britannia Employees' General Welfare Asociation Private Limited
  6. Leila Lands Ltd., Britannia Employees' Educational Welfare Asociation Private Limited
  7. Sea Wind Investment & Trading Co. Ltd
  8. Britannia Employees' Medical Welfare Asociation Private Limited
  9. Britannia Nepal Private Limited
  10. Vasna Agrex and Herbs Private Limited
  11. Lll, Mauritius
  12. Lotus Viniyog Private Limited
  13. Restpoint Investments Ltd.
  14. Leila Lands Sendirian Berhad
  15. Medical Microtechnology Limited
  16. Island Horti-Tech Holding Pte. Ltd.

bbtc share price analysis

BBTC Basic Company Details  

Parameters                                                     Details
Company                                                       BBTC
Current Stock Price (Rs)                               1,226
Face Value (Rs)                                             2.0
No. of Shares (Crore)                                    7.0
Market Capitalization (Rs Crore)                  8,556
               

BBTC Key Financials - Trend    

Parameters                                                                        Details
BBTC Sales Growth (9-Year CAGR)                              11.6%
BBTC Profit Before Tax Growth (9-Year CAGR)           40.3%
BBTC Net Profit Growth (8-Year CAGR)                       42.7%
BBTC Average Debt/Equity (5-Years, x)                         0.3
BBTC Average Return on Equity (5-Years)                     31.8%
BBTC Average P/E (5-Years, x)                                       6.3
BBTC Latest P/E (x)                                                        11.8

BOMBAY BURMAH TRADING CORPORATION LTD                                        

Dhandho IV - Lower Range                                          
Year                       FCF (Rs Cr)           PV of FCF (Rs Cr)
0              Excess Cash (Latest)                        5,829
1              FY18       (373)                                (333)
2              FY19       (429)                                 (342)
3              FY20       (493)                                 (351)
4              FY21       (542)                                 (345)
5              FY22       (596)                                 (338)
6              FY23       (656)                                 (332)
7              FY24       (689)                                 (312)
8              FY25       (723)                                 (292)
9              FY26       (760)                                 (274)
10           FY27       (797)                                  (257)
10                           -7,975                                 (2,568)

 -7,975 This is the price at which the business is sold at the end of the 10th year. This price is calculated using a multiple - like 10x or 15x - to 10th year's calculated FCF. 

Intrinsic Value                                                  86
Current Mkt. Cap.                                            8,556
Premium/(Discount) to IV                               9885%


BOMBAY BURMAH TRADING CORPORATION LTD   


Dhandho IV - Higher Range                                         
Year                       FCF (Rs Cr)           PV of FCF (Rs Cr)
0              Excess Cash (Latest)                        5,829
1              FY18       (389)                                 (347)
2              FY19       (467)                                 (372)
3              FY20       (560)                                 (399)
4              FY21       (644)                                 (409)
5              FY22       (741)                                 (420)
6              FY23       (852)                                (432)
7              FY24       (937)                                (424)
8              FY25       (1,031)                             (416)
9              FY26       (1,134)                              (409)
10           FY27       (1,247)                              (402)
10                           (18,707)                            (6,023)

18,707 This is the price at which the business is sold at the end of the 10th year. This price is calculated using a multiple - like 10x or 15x - to 10th year's calculated FCF. 

Intrinsic Value                                                 (4,224)
Current Mkt. Cap.                                            8,556

Premium/(Discount) to IV                               -303%


BBTC is trading above the higher Ben Graham Formula (higher range). Wait for the correction.

BBTC share price analysis using Ben Graham Formula (Low Range)        

               
Company Name   BOMBAY BURMAH TRADING CORPORATION LTD
Year Ended         Mar/19
               
Avg 5-Yr Net Profit (Rs Crore)      914.5
PE Ratio at 0% Growth                   8.5
Long-Term Growth Rate                14.7
               
Ben Graham Value (Rs Crore)        34,731
Current Market Cap (Rs Crore)      8,556

BBTC is trading lower than Ben Graham Formula low range formula

BBTC share price analysis using Ben Graham Formula ( higher Range)            

               
Company Name BOMBAY BURMAH TRADING CORPORATION LTD
Year Ended         Mar/19
               
Avg 5-Yr Net Profit (Rs Crore)        914.5
PE Ratio at 0% Growth                    8.5
Long-Term Growth Rate                  29.5
               
Ben Graham Value (Rs Crore)         61,688
Current Market Cap (Rs Crore)        8,556

BBTC is trading lower than Ben Graham Formula high range formula

EXPLANATION     
                                           
Ben Graham's Original Formula: Value = EPS x (8.5 + 2G)                                               
Here, EPS is the trailing 12 month EPS, 8.5 is the P/E ratio of a stock with 0% growth and g is the growth rate for the next 7-10 years                                                
                                                               
Ben Graham's Revised Formula: Value =[EPS x (8.5 + 2G) x 4.4] / Y   

Download the bbtc 5-year balance sheet from the link
                                                   
Here, 4.4 is what Graham determined to be his minimum required rate of return. At the time of around 1962 when Graham was publicizing his works, the risk-free interest rate was 4.4% but to adjust to the present, we divide this number by today’s AAA corporate bond rate, represented by Y in the formula above.









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