KRBL can climb..KRBL Ltd. operates as a holding company which engages in the export of rice miller and basmati rice. It operates through the following segments: Agro and Energy. The Agro segment supplies rice, Furfural, seed, bran and bran oil. The Energy segment comprises of power generation from wind turbine, husk based power plant and solar power plants.
KRBL Ltd. CMP is 300.65. The positive aspects of the company are Attractive Valuation (P.E. = 15.7), Company with Low Debt, Company with Zero Promoter Pledge, FII / FPI or Institutions increasing their shareholding and Rising Net Cash Flow and Cash from Operating activity. The Negative aspects of the company are MFs decreased their shareholding last quarter, De-growth in Revenue and Profit and Increasing Trend in Non-Core Income.
Entry can be taken after closing above 308 Targets in the stock will be 328 and 348. The long-term target in the stock will be 358 and 372. Stop loss in the stock should be maintained at Closing below 288 or 264 depending upon your risk taking ability.
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Krbltechnicalanalysis
World's leading basmati rice producer KRBL Ltd trend analysisPrice is moving inside cycle degree 5th wave of super cycle degree 3rd wave.
Good time to buy as price is at the initiation of sub wave 3 of 5th wave.
5th wave will end somewhere around 2150 level.
As per conventional technical analysis, price bounced from trendline support and price is showing strong bullish divergence with RSI on daily & weekly TF, signifying trend reversal.
PE expansion is highly likely with improved OPM in upcoming quarters, price is currently trading near June 2016 levels.
A nice 7X possibility is there in long term (2-2.5 years max).
Other targets are highlighted as per your investment horizon.
Do your own due diligence before taking any action.
Peace!!
KRBK - Stock AnalysisKRBL Ltd. is exhibiting strong bullish momentum across various technical and fundamental indicators, making it an appealing prospect for investors. In the short term, the one-day analysis reveals a "Strong Bullish" sentiment, with the latest tick indicating a robust price rise supported by substantial trading volume. The Parabolic SAR (PSAR) is also "Bullish" with a bullish crossover, further bolstering the bullish outlook.
The MACD indicator is "Strong Bullish," with the Macd/Signal line displaying a bullish crossover, suggesting that the stock is trending favorably. The CCI (Commodity Channel Index) is showing "Strong Bullish" signals as it is rising from the oversold level of 100.0, indicating a very bullish sentiment. Similarly, the RSI (Relative Strength Index) is also "Strong Bullish," rising from the oversold level of 70.0, which is a very bullish signal.
The ADX (Average Directional Index) is "Bullish" and indicates a bullish reversal, further reinforcing the positive sentiment. The HighLowMABand is "Strong Bullish" with a positive breakout pattern. The daily candlestick pattern is also "Strong Bullish," providing additional technical support for the stock.
In terms of short-term support, KRBL Ltd. has identified key support levels, with bottom points at 357.0 on November 1, 2023, and 358.6 on October 25, 2023, which can be essential reference points for traders and investors.
From a fundamental perspective, the company appears undervalued with a Price to Intrinsic Value of 0.773, a Price to Earnings Ratio of 11.50, and an EV to EBITDA ratio of 7.86. These metrics collectively suggest that the company's stock may be trading at a discount to its intrinsic value.
KRBL Ltd. has seen a significant increase in its Book Value over the last three years, indicating a robust financial position. The company also offers an Earning Yield of 8.70% and demonstrates excellent quarter-over-quarter (QoQ) earnings per share (EPS) growth. While the Piotroski F Score is at a stable value of 5.0, the annual net profit has been on an upward trend over the last three years.
Additionally, the company maintains a good Return On Capital Employed of 14.32% and a solid Return on Equity of 16.50%. A healthy net margin of 13.18% adds to its financial strength, although it offers a relatively low dividend yield of 0.270%, indicating a preference for reinvesting profits for growth.
Notably, KRBL Ltd. has achieved annual sales growth for three consecutive years, and there has been a steady increase in total assets over the last three years, reflecting the company's consistent expansion and overall financial stability. These combined technical and fundamental indicators position KRBL Ltd. as an attractive investment opportunity with strong growth potential.
Go Long above 381.95
Stop Loss 341
NSE:KRBL Company website krblrice.com
World's largest rice miller. It is best known for its India Gate brand of basmati rice, which is the largest selling rice brand in India
Also World's largest Basmati Rice exporter with channels in more than 82 countries
Lowest price to earning at 12, Market Cap: Rs. 5,700cr ( $ 750 million)
6% debt vis a vis peer companies debt @ 25%
Other brands- Doon, Nur Jahan, Indian Farm, Bemisal, Aarati, Unity, Lotus, Taj Mahal Tilla, Shubh Mangal, Necklace, Lion, Al Wisam, Train, Al Bustan, Telephone, Southern Girl, Alhussam, Blue Bird, City Palace
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Fundamental change- Share has been muted for years, war escalates commodity prices, demand will only increase while countries face a supply crunch, agro sector stands to gain, just how metal sector is outperforming. Local target 580, but if hold long enough- 4 years, see a 5x return.