Company Overview -
Bambino Agro Industries Limited,
incorporated in 1982, is a well known brand with pan India marketing network. Company sells pasta, macaroni , noodles and a number of ready to eat items under the BAMBINO brand. From its ongoing efforts, Bambino has introduced an innovative range of products such as Spaghetti, Macaroni, and Instant Pasta besides Indian Ethnic Food like spices, masalas, instant food mix, ready to eat sweets, snacks, soups powders, and hing (compounded asafoefida) as value-added products to the already existing product line. At Present, Bambino has more than 80 prestigious products in variant styles, tastes n types and varieties.
Even this company is in operation for the past many years with a good brand recall ,its financial performance so far going smooth. However,higher debt level is the key reason for concern. Since promoters hold almost 75 % stake in it, it is easy to dilute some stake and raise funds to bring down debt burden.Considering the brand value and the premium valuations realized in some private equity deals in food sector it looks a good value bet.
In recent times company expanding to new territories and introducing various new products. Company is continuously rolling out new products in the market, same can be found here. To ramp up its sales force, company recruited many employees in recent past. To sell its ready to eat items BAMBINO started to open retail outlets in multiplexes. Even in the financial front too , company has shown decent performance from last 2-3 years. Company's year ending is in September and it already posted an EPS of Rs.6 in 6 months against last full year EPS of Rs.8. From last 3 years they are even consistent with their dividends which says promoters are trying to make an investor friendly relationship. If management is willing to take some steps like reducing debt,increasing corporate governance standards ..etc ,this stock will be a multibagger in long term.
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