Indian Basmati Rice Market is ~2.5Mn MT of which Un-Branded Basmati rice forms 1.5Mn MT
With an accelerating shift to branded rice, here's a Detailed 🧵 on
👉KRBL Ltd - Largest Basmati Rice Brand in the World
🔁Do Retweet/Share for wider reach
#StockMarket #stocks #investing
With an accelerating shift to branded rice, here's a Detailed 🧵 on
👉KRBL Ltd - Largest Basmati Rice Brand in the World
🔁Do Retweet/Share for wider reach
#StockMarket #stocks #investing
(1/n)
▪️KRBL is the World’s Largest Rice Miller and Basmati Rice Exporter
▪️Co has the Biggest Rice Milling capacity in the world
▪️India’s first integrated rice company
▪️KRBL is the World’s Largest Rice Miller and Basmati Rice Exporter
▪️Co has the Biggest Rice Milling capacity in the world
▪️India’s first integrated rice company
(2/n)
Market Leader amongst Peers
▪️India’s largest exporter of branded basmati rice with footprint in more than 90 countries
▪️KRBL has largest contact farming network coverage for rice
▪️India Gate, well established brand in India
▪️KRBL leading player in branded basmati rice
Market Leader amongst Peers
▪️India’s largest exporter of branded basmati rice with footprint in more than 90 countries
▪️KRBL has largest contact farming network coverage for rice
▪️India Gate, well established brand in India
▪️KRBL leading player in branded basmati rice
(3/n)
▪️Integrated operations with world’s largest rice milling capacity and the world's largest plant in Punjab, India
▪️500+ Dealer and Distributors across India
▪️Integrated operations with world’s largest rice milling capacity and the world's largest plant in Punjab, India
▪️500+ Dealer and Distributors across India
(4/n)
Reported Highest ever quarterly Profits during Q1FY23
▪️Revenue at 1240cr vs 994cr (+25% QoQ) vs 1030cr (+21% YoY)
▪️PAT at 165cr vs 109cr (+51% QoQ) vs 140cr (+18% YoY)
▪️EPS of 6.99 vs 4.63 (+51% QoQ) vs 5.98 (+18% YoY)
Reported Highest ever quarterly Profits during Q1FY23
▪️Revenue at 1240cr vs 994cr (+25% QoQ) vs 1030cr (+21% YoY)
▪️PAT at 165cr vs 109cr (+51% QoQ) vs 140cr (+18% YoY)
▪️EPS of 6.99 vs 4.63 (+51% QoQ) vs 5.98 (+18% YoY)
(5/n)
Earnings Highlights
▪️Domestic business grew ~47% YoY to 709cr
▪️Exports business grew by 73% QoQ to 485cr
▪️Gross Profit at 403cr vs 325cr YoY
▪️Gross profit margin improved due to higher avg. realization in basmati rice by 25%
▪️Cash balances at 938cr vs 407cr (+130% YoY)
Earnings Highlights
▪️Domestic business grew ~47% YoY to 709cr
▪️Exports business grew by 73% QoQ to 485cr
▪️Gross Profit at 403cr vs 325cr YoY
▪️Gross profit margin improved due to higher avg. realization in basmati rice by 25%
▪️Cash balances at 938cr vs 407cr (+130% YoY)
(6/n)
▪️Sales driven by resurgent demand, price buoyancy & distribution expansion
▪️Buoyant sales of basmati & non-basmati sales
▪️Unity brand has grown by 42% in volume & 50% in revenue
▪️Unity is now a Rs. 500cr brand, drawing in customers from the un-branded segment
▪️Sales driven by resurgent demand, price buoyancy & distribution expansion
▪️Buoyant sales of basmati & non-basmati sales
▪️Unity brand has grown by 42% in volume & 50% in revenue
▪️Unity is now a Rs. 500cr brand, drawing in customers from the un-branded segment
(7/n)
Strategy going forward
▪️Preference for packaged rice has increased significantly, KRBL to capitalise this opportunity by strengthening its distribution network
▪️To grow the retail distributors over the next five years
▪️New product launches across Heath Foods portfolio
Strategy going forward
▪️Preference for packaged rice has increased significantly, KRBL to capitalise this opportunity by strengthening its distribution network
▪️To grow the retail distributors over the next five years
▪️New product launches across Heath Foods portfolio
(8/n)
▪️Focus on trade marketing to accelerate the already ongoing shift in consumption from unbranded to branded rice
▪️Facilities being created at Gujarat, Karnataka & Madhya Pradesh towards enhancing presence in non-Basmati regional rice
▪️Continue to market Unity brand
▪️Focus on trade marketing to accelerate the already ongoing shift in consumption from unbranded to branded rice
▪️Facilities being created at Gujarat, Karnataka & Madhya Pradesh towards enhancing presence in non-Basmati regional rice
▪️Continue to market Unity brand
(9/n)
Production & Yields have improved in INDIA
▪️High yielding varieties of rice have led to surplus production in India
▪️Adoption of technology in farming have helped spur growth in produce
Production & Yields have improved in INDIA
▪️High yielding varieties of rice have led to surplus production in India
▪️Adoption of technology in farming have helped spur growth in produce
(10/n)
Global Markets provide BIG Opportunity
▪️Focus on quality has led to increased demand for Basmati globally
▪️India is the #1 exporter of rice & has 65% share of the global basmati mkt
▪️Globally, India accounts for ~85% of basmati exports which is expected to rise further
Global Markets provide BIG Opportunity
▪️Focus on quality has led to increased demand for Basmati globally
▪️India is the #1 exporter of rice & has 65% share of the global basmati mkt
▪️Globally, India accounts for ~85% of basmati exports which is expected to rise further
(11/n)
KRBL’s dominating presence in the GCC region (India Gate Share in Premium Segment Rice)
▪️Kuwait 86%
▪️Qatar 82%
▪️UAE 74%
▪️KSA 86%
KRBL in EUROPE
▪️KRBL has strong presence in Norway, Sweden and Denmark
KRBL’s dominating presence in the GCC region (India Gate Share in Premium Segment Rice)
▪️Kuwait 86%
▪️Qatar 82%
▪️UAE 74%
▪️KSA 86%
KRBL in EUROPE
▪️KRBL has strong presence in Norway, Sweden and Denmark
(12/n)
KRBL in Americas
▪️#1 in Canada in premium basmati rice
▪️KRBL continues to leverage good organized retail structure in Latin America
KRBL in RoW
▪️#1 in South Africa in premium basmati rice
▪️Growing markets in North Africa
▪️#1 in Australia, New Zealand and Fiji in PBR
KRBL in Americas
▪️#1 in Canada in premium basmati rice
▪️KRBL continues to leverage good organized retail structure in Latin America
KRBL in RoW
▪️#1 in South Africa in premium basmati rice
▪️Growing markets in North Africa
▪️#1 in Australia, New Zealand and Fiji in PBR
(13/n)
🎯KRBL has reported its Lifetime Best quarter during Q1FY23 & stock price is still 60% off ATH of 675 made during FY18
👉FY23EEPS of 26.5 implies co is currently trading extremely cheap at a P/E of 10x forward earnings
⚡️Deserves a P/E of atleast 17-18x
🎯KRBL has reported its Lifetime Best quarter during Q1FY23 & stock price is still 60% off ATH of 675 made during FY18
👉FY23EEPS of 26.5 implies co is currently trading extremely cheap at a P/E of 10x forward earnings
⚡️Deserves a P/E of atleast 17-18x
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