Thursday 4 September 2014

orient beverages - buy

Company Profile :-

The name that epitomizes mineral water today was first introduced in  Mumbai in the early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with the idea of selling bottled water in India. His company Bisleri Ltd. offered mineral water in two variants -bubbly and still. In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC non-returnable bottles and finally advanced to PET containers.

Bisleri has undergone significant expansion in their operations. The company has witnessed an exponential growth with their turnover multiplying more than twenty times in a short span of 10 years. The average growth rate over this period has been around 40% with Bisleri enjoying more than 60% of the market share in the organized mineral water segment.Currently Bisleri has 11 franchisees , and ORIENT BEVARAGES is
also one of them .


Since for a businessman, the profits can never be enough, hence promoters have even entered into lucrative real estate business with substantial margins.

Why to Buy?

1. Strong Brand name - Since company is one of franchise of Bisleri brand with major market share and mineral water is always in demand in our country, it can provide substantial growth in future.

2. The company is entering soft drinks business along with Bisleri Inc. Hence, going forward company can diversify it's product portfolio which can help it to acquire more brand value and further market share. 

3. A new plant of similar capacity has started production since May 14. The demand was always great but with doubling of capacities, the growth will go in a different trajectory altogether.

4. Promoters have recently released all their pledge shares which is an early sign of positive business growth. Company paid its maiden dividend this year. This is good indication of the confidence the management has for future profit growth.

Since, its a small cap company with market cap of 14 Crs. only, majority of business growth is dependent on how promoters can shape up the company in future. With medium risk appetite investor can look into this company with the target of 90.

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