MIDCAP MANTRA 10X- BANARAS BEADS LIMITED

New Year Pick For 2017

UTTAR PARDESH ELECTIONS May Change Fortune for “SmallCap Companies”.. “TURNAROUND STORY”

MIDCAP MANTRA- BANARAS BEADS LIMITED

“Niche Player”

Market Cap.: ₹ 33.51 Cr.

Current Price: ₹ 50.50

Book Value: ₹ 64.92

Dividend Yield: 4.95%

Face Value: ₹ 10.00

Listed on BSE and NSE

www.bblindia.com

52 Week High/Low: ₹ 62.70 / ₹ 35.20

About the Company 

Banaras Buttons & Beads Ltd is pioneer in glass bead industry, a deemed Public Limited Company Renown Export House. It’s a third generation family run business and the major share holdings are within the family.
BBBL is an organically developed USD 150Million (600 crore) group operating from 450,000 sq ft (0.45 million sq ft) of space in New Delhi NCR and 10,00,000 sq ft (1 million sq ft) of its own manufacturing base Our Head & Corporate Office is in New Delhi and Factories in  Greater Noida and Noida manufacturing All kind of Glass Beads, Seed Beads, all other material Beads, Fashion Jewelry/Accessories, jewelry components and  Soft Home Furnishing Products.
The production of merchandise is taken care by a strong work force of more than 1100 skilled workers and over 70 associate manufacturers of Handicrafts, Fabrics, Scarves & Brocade etc., working under our technical expertise and quality control. 
The Hub/Head Office, New Delhi is headed by  Raj Kumar Gupta, Managing  Director & CEO of the Company. 

Banaras Beads also sell Products online through their Portal.

Reason why we Picked BBL as Turnaround Story

There was sharp appreciation in the price of gold in past few years. This is mainly due to a shift in asset allocation by individuals and countries in favor of gold at a time of financial turbulence around the globe. This unstoppable increase in gold prices forcing lower class and lower middle class people to look into cheap alternatives for the purpose of making ornaments / jewelry .This is not the trend only in our country but in many other Countries as well .This situation improving the potential of another business – Imitation Jewelry. Beads is an important part of this business. This business is dominated by unorganized sector and there is only one listed company from this space – Banaras Beads which is manufacturing in manufacturing and exporting glass beads, imitation jewelry and other similar products. Banaras beads came out with an IPO in 1995 with a premium of Rs.75 per share. Now BBL is planning to tap the opportunities aggressively by expanding its design and production facilities, finding new export channels, entering into new territories etc.At present company exporting its products to about 60 countries including USA, Africa, Europe and Arabian countries. Company also launched fashion jewellery items under the brand ‘De-Lemon’  and also launched an online shopping portal for Fashion Jewelery & accessories ( Link below).Even this industry is dominated by un organized players ,company’s like BBL having advantage of most modern designing facilities,adoption of contemporary styles,Image of brand ..etc. Demand scenario for imitation jewellery is expected to pick up further.

                                                    

Even this company’s stock listed in both stock exchanges it frequently traded only in BSE .Because of this low liquidity ,it is only suitable for those like  high risk high profit kind bets and not for average risk takers. Invest only a very small portion of your corpus in these kind bets.BBL is trading at a price close to Rs.50 /-

Pros:

- Company has reduced debt.

- Company is virtually debt free.

- Stock is trading at 0.78 times its book value

- Stock is providing a good dividend yield of 4.95%.

- Company has been maintaining a healthy dividend payout of 42.89%

Conclusion

One Can Look at this Hidden Gem can Fetch You Good Returns. Short –Medium Term Target Rs.90-110+ (80-100% Upside)

Regards,

MIDCAP MANTA 10X

midcapmantra10x@gmail.com