Sunday, March 27, 2011
Company : BAMBINO AGRO INDUSTRIES LTD
BSE Code : 519295
CMP : Rs.35/-
FV : 10
Recommendation : BUY
BAMBINO is a household name in most parts of India for the past many years. But the company owns this brand could not generate anything to its shareholders so far .Bambino agro came out with a public issue in the first part of 90's at a premium of Rs.30/- .After touching a high of Rs.84 in 1994 its share price is still hovering below the IPO price.Bambino manufacturing Vermicelli, Pasta, Instant Foods, Sweets/Namkeens macaroni ..etc with the brand name BAMBINO from its manufacturing units located at Hyderabad, Gurgaon and Nagpur .Bambino's turnover shows reasonable growth in last ten years from just Rs.38 Cr in 2001 to Rs.200 Cr in 2010.But till 2009 there was nothing to comment about the bottom line which was limited to few lakhs.Non professional promoters are the biggest negative of this company. But the recent efforts of the management again giving some hopes about this company after a long tperiod.Recently company entered into an agreement with Domino's pizza chain for supplying wheat pasta.As part of strengthening its marketing efforts company recently appointed additional C&F agents and super stockists across India to tap the growing market of ready to cook/eat food.Bambino is also launching new products like 3 minute instant pasta with sauce,Macaroni Crocodelite,multi cereal pasta ..etc . It also planning to launch some varieties of dietary functional foods in near future .All these efforts are showing some positive signs from the management side to tap the large opportunities available in this industry.After a long period company has shown some improvement in its margins in last FY where its bottom line grows from few lakhs to 1.63 Cr .In the current FY,for the three month period Sep - Dec Company posted a net profit of Rs 0.55 v/s 0.48 lac.
All together, there is a great brand in the hands of this company in a growing industry with huge potential in a country like India.If promoters are able to perform some smart moves ,BAMBINO AGRO INDUSTRY may turn as a multibagger from current level in future. Company is currently trading at Rs.35/- with a market cap of just 28 Cr against an annual turnover above Rs.200 Cr.