We should extremely bullish on BFL now. We can consider this quarterly report as one of the outstanding reports in the market and they can go their journey together with another food company NEST.
New Institutional investors including foreign have become major shareholders during last quarter
Reported quarterly earnings: 10.25 better than expected. Nine month quarterly earnings: OVER 23
Current REO is over 45. It should increase further due to strong improvements. It will have ROE over 60 in the coming financial year
BFL has almost all of following now
•Better cost control and account systems.
•Strong competitor in the market.
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•Leader in the group
One of the highest ROE market after NEST
Strong cash flow in the future( their cash positing have increased dramatically according to latest quarterly report)
Less debt ( they have one of the lowest debt in books now)
New Investments and new markets
Growth in sales, earnings, production and market
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•Ability to declare higher dividend
Best current ratios in the market now and in the future. In other word they have positive working capital.
One of the strongest balance sheets in the market in the future
Companies having all types of attractive operational financial ratios
Low peg ratio in the market
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•Great value especially on future earnings and growth( some companies will have volatility in earnings, inconsistent earnings, one or three quarters will have good earnings and then can come down, in some companies earnings can come down one or three quarters later earning will go up for a long period. Therefore we should have idea of earnings at least for next six quarters)
Low P/E ratio compare to other overvalued stocks, market. However growth investors ready to pay higher p/e (premium) if they see rapid growth in the future.
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•Companies with innovative ideas
Characteristics of hidden giants having great businesses
New Institutional investors including foreign have become major shareholders during last quarter
For me now #BFL is more attractive than both GRAN and TAFL now. They should announce their quarterly results before Friday.Only BFL is investing in new projects while declaring higher dividend. In addition it has one of the highest ROE in the market in the future, strong balance sheet, less debt, positive working capital etc.
I expect some movements from tomorrow. Pl do more study.
It should break following barriers:
Rs.500
Rs.600
Rs637.50 And Rs.700
Their long term stock price is much higher. I heard they are exporting chicken waste to China as well. They are making use of every opportunity such as BOI and duty facilities, export market etc.
We also should keep in mind their strong cash flow and less debt in the future.
Good luck