Established in 2003 (Merging of all 58 companies) | 63 Subsidiaries | Spirits , Beer , alcoholic drinks and food |
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 4.49 (3.39 times overvalued of its actual value)
- Price to earning ratio : 21 (Growing below industry standard – 24.465)
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 38.6 % – Better than F&N (434.7%)
- Growth Performance : 20.19% – Better than F&N (-21.96%)
- Current Ratio : 1.527 (F&N is at 3.605)
- Cash flow per share : 0.0473 ( You’re paying 21 Bhat)
- Good management ability ( Constant dividend growth | Positive net income/gross profit margin | Reduced in financing | Overall a positive cash flow |)
3) Technical Analysis
Overall market trend is on the bull(UP) side, as market clearly shows higher highs and higher lows. Current market highest high is at $1.055, if this level is broken market has a higher odds to trend higher and longer. Additionally, market is finding demand for its stocks as market heads to key level $0.75.
Market has a short-term bear (down) trend as it continues to market lower high and lower low. It is currently testing gap level, market could either find demand at its current level $0.85 (Unlikely) or $0.75.
4) Would I be vested into it??
Yes…. as the title said. Compared to F&N, it is growing at a better rate even though current ratio is poorer. I’ll be planning to buy in two tranches, one now and another at 0.75.
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