Why is Bombay Burmah Trading Corporation Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 8.70% over the last 5 years
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 6.24% returns since then
- The stocks MACD and KST technical factors are also Bearish
3
With ROE of 24.6, it has a Very Expensive valuation with a 2.4 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 14.85%, its profits have risen by 138.9% ; the PEG ratio of the company is 0.1
4
Despite the size of the company, domestic mutual funds hold only 1.44% 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
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 Bombay Burmah for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Bombay Burmah
14.65%
0.29
50.86%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
8.70%
EBIT Growth (5y)
12.74%
EBIT to Interest (avg)
10.74
Debt to EBITDA (avg)
1.67
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.69
Tax Ratio
28.47%
Dividend Payout Ratio
1.22%
Pledged Shares
0
Institutional Holding
11.12%
ROCE (avg)
42.07%
ROE (avg)
8.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
54
Price to Book Value
2.43
EV to EBIT
4.61
EV to EBITDA
4.12
EV to Capital Employed
2.34
EV to Sales
0.71
PEG Ratio
0.08
Dividend Yield
1.02%
ROCE (Latest)
49.58%
ROE (Latest)
24.55%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Movement
8What is working for the Company
PAT(9M)
Higher at Rs 866.63 Cr
PBDIT(Q)
Highest at Rs 874.43 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 18.66%
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 29.34 times
Loading Valuation Snapshot...
Here's what is working for Bombay Burmah
Profit After Tax (PAT) - Nine Monthly
At Rs 866.63 cr has Grown at 82.34%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 874.43 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 18.66%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Nine Monthly
Higher at Rs 866.63 Cr
than preceding 12 month period ended Dec 2024 of Rs 759.52 crMOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
PAT (Rs Cr)
Here's what is not working for Bombay Burmah
Debtors Turnover Ratio- Half Yearly
Lowest at 29.34 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio