BFL much under valued

Nasdaq · 1 BFL much under valued Wed Feb 09, 2011 11:05 pm

Nasdaq

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Considering the current price of BFL

PER (trailing) 28.35
Sector PER for BFT 24.4

Releasing the quarterly reports with excellent performance in that sector we can assume the sector PER will drop.

Lets take it around 20.
current share value should be 28.35 x 20 = Rs. 567/=
It means when considering the trailing PER, BFL is very much under value.
According to the last quarterly report EPS is 10.24.
So PER forward can be assume as 10.24 x 4 = 40.96
So atleast there is a possibility to rise up to Rs. 819/= before releasing of next quarter report.

If we consider the minimum condition, that mean no growth fro this Q to next Q (impossible case) there EPS will be 34.14 in next annual report.

so the share price at that time must be Rs.682/=

pls share your views

happy trading

Last edited by Quibit on Thu Feb 10, 2011 10:46 am; edited 1 time in total (Reason for editing : format condensed)

dmjesua · 2 I agree with you Thu Feb 10, 2011 12:06 am

dmjesua

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hi, thanks for your good analysis. I think BFL is long term investment. They are on the way of new developments... chickens are getting ready from their new farm. they have 10 year tax free period. chicken food consumption is increasing every day-- every minute. more and more supermarkets are arising even in the village site. tourist inflow, worldcup match, north and east development all will give positive impact. 2011 December, no need to import chicks and eggs... because BFL is preparing with new farm. But one thing- demand is still high, supply low... This is benefit to all poultry group.

wis · 3 Re: BFL much under valued Thu Feb 10, 2011 8:29 am

wis

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Anybody know how to arrange an educational visit to a poultry farm like visiting tea, jam, cordial .. factories or plantations to watch the process? Do Bairaha or other farms have them?

$$$ · 4 Re: BFL much under valued Fri Feb 11, 2011 1:17 am

$$$

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BFL has room to increase further and has many plus factors on its side. But the sooner they go for a split the better.

tubal · 5 Re: BFL much under valued Fri Feb 11, 2011 6:40 am

tubal

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wis wrote:Anybody know how to arrange an educational visit to a poultry farm like visiting tea, jam, cordial .. factories or plantations to watch the process? Do Bairaha or other farms have them?

believe me you don't want to do that.

gamaya · 6 BFL Fri Feb 11, 2011 5:48 pm

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You guys think they can score 10+ eps next quarter also? Last Q was Festive season. Next Q would be little less I think. B cos they get more profit from chicken parts which is easy to sell in high demand. But the Q starting from march would be very profittable, due to festive season and output fron their new farm.

themask · 7 Re: BFL much under valued Sun Feb 13, 2011 8:40 pm

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Yes and I think the share price will adjust to their new farm output by end of this quarter or maybe by first half of next quarter. One director had sold some shares recently so I don't think there will be any new announcements soon such as a share split but who knows.