Sunday, March 27, 2011


Company                  : BAMBINO AGRO INDUSTRIES LTD
BSE Code                  : 519295
Group/Index           :T
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.


  1. It Looks too risky. They have very high debts, interest outgo is very High.

    One may make money on this stock.

    However Risk return ratios are not in favor.
    On top of that you have a management who is stealing aways the money, from company.

    One more thing promoters of this co play in their own stock also.

  2. It is difficult to accept the last point.I don't know how the management can play the shares of a company which hardly trading around 500 shares in most of the days and in a range of 30-40 for the past many years.

  3. Dear VP,
    I come accross a news of big investor (RJ) investing in a small cap stock (Market cap about 10 crore).
    The company does not have any sales but hold some shares in Deep Industries and minority stake in a CBM project of Deep industries. Yes, it is group company of Deep Industries.
    Can u plese advise whether it is worth investing.
    The price is very low, but may go up once the RJ stake is made public in Annual Report or in print media or in news channels or the plans of the company are made public.
    Can u please advise.
    Thanking U

  4. i agree bambino is a good brand but i wuld prefer ADF Foods instead of Bambino becoz of low debt to equity ratio ,good ROE,and multiple brands

  5. I don't know the reasons for RJ's investment In Adinath Exim Resources Ltd .There may be some reasons known only to him. But I am skeptical about the management of Deep Ind group and I can't say it is a good company for investment only because RJ invested in this company

  6. I think risk reward favours investment at this stage as the value of investments is more than 15 crore and the market cap is 10 crore. Any further developments which are not known to the market participants at large now would be a bonus. Investment can be considered at least upto Rs.30 with some risk.
    No risk there is no reward.
    This may reward the risk investors handsomely.
    I hope u would support my view.

  7. DEAR SIR,

  8. No change in my earlier views on Krebs.Please search the blog for old reco.



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