BBTC - Investment Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Investment List📊 Investment Analysis: Bombay Burmah Trading Corporation Ltd (BBTC)
⭐ Investment Rating
4.4 A fundamentally strong holding company with attractive valuations and excellent capital efficiency, though investor patience is key due to its complex structure.
📈 Long-Term Investment Potential
BBTC is a diversified holding company with stakes in Britannia, plantations, auto components, and healthcare. Its financials suggest strong long-term potential
ROE (21.9%) & ROCE (35.5%): Exceptional capital efficiency.
PEG Ratio (0.07): Extremely undervalued relative to earnings growth.
P/E (12.0) vs Industry PE (59.1): Deep value play.
Dividend Yield (0.88%): Modest but consistent.
Debt-to-Equity (0.28): Low leverage, financially sound.
EPS (₹161): Strong earnings base.
However, BBTC trades at a discount due to its holding structure and capital allocation concerns (e.g., past investments in GoAir). Still, its indirect stake in Britannia and recent asset monetization (e.g., sale of coffee estates) are positives
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🎯 Ideal Entry Price Zone
Indicator Value
50 DMA ₹1,954
200 DMA ₹1,994
RSI 46.2 (neutral)
MACD -2.32 (bearish)
Support Zone ₹1,850–₹1,900
Resistance ₹2,050–₹2,100
Suggested Entry Zone: ₹1,850–₹1,900 This range offers a technical cushion and aligns with historical support and neutral momentum indicators.
🧭 Exit Strategy / Holding Period
If you're already holding BBTC
Holding Period: Long term (5–10 years), ideal for value unlocking through Britannia stake and asset monetization.
Exit Strategy
Partial Exit near ₹2,400–₹2,500 if valuation re-rates and holding discount narrows.
Hold if ROE sustains above 18% and PEG remains below 0.5.
Reassess post Q2 FY26 results (expected August 6, 2025) and monitor developments around GoAir exit and Britannia dividends
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Would you like a breakdown of BBTC’s stake in Britannia or a comparison with other holding companies like Tata Investment Corp?
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dailybulls.in
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forum.valuepickr.com
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