Highlights :
- KRBL (Bse Code : 530813) is the largest Basmati Rice Miller in India
- India's largest rice exporter, with premium brands such as "India Gate", now marketing aggressively in the country too, taking advantage of the explosion of "big retail"
- Pioneer of Pusa-1121 variety of rice, now declared a "basmati" variety
- Going into production of "organic" (chemical free) rice in a big way
- Addresses a market which will continue to expand, never contract
What can go wrong :
- Govt regulations
- Rice milling entails storing rice for months/years , hence is very capital intensive. So interest burden is a factor to track closely.
KRBL can be picked up in the 50-75 range for reasonable returns in the medium term .
Author : Bosco Menezes
Recommendation Date : 27.1.2009
Disclaimer/Disclosure : At the time of writing this article the author has a position in the stock covered by this report. The author or any of his dependent family members may make purchases or sales of the securities mentioned in the report while the report is in circulation. Readers/recipients of this report are strongly advised to do their strict due diligence, and should be aware that the value of investments can go down as well as up. The author shall not be liable for any direct or indirect losses arising from the use of the contents of this report, and readers are therefore cautioned to use the information contained herein at their own risk. In fact, readers would do well to seek the advice of a qualified independent advisor. The author certifies that all of the views expressed in this report accurately reflect his personal views about the subject company at the time of writing this report. Feedback / brickbats may be hurled at the author at boscom@gmail.com .
