Amey Kulkarni of Candor Investing Fund presented his in-depth investment thesis on KRBL Ltd (India: KRBL) at Asian Investing Summit 2019.
Thesis summary:
KRBL, with a market cap of approximately USD 1.2 billion, is a retailer of the long-grain aromatic rice. Basmati rice is the aspirational variety of rice for people who prefer the non-sticky rice over the sticky rice in the rice-eating world (i.e., the Indian subcontinent, the Gulf countries, and most of Africa). KRBL supplies to 82+ countries, and its brands rank among the top three in India, the United Arab Emirates, Saudi Arabia, Qatar, Oman, and several African countries.
KRBL has roots dating back 130+ years and not only understands the Basmati rice business, but has also been a pioneer in R&D and the adoption of the latest technological trends in the production, distribution, and marketing of Basmati rice.
Basmati production is only approximately 2% overall rice production. With per-capita GDP around USD 2,000 in India and growing rapidly, Basmati rice consumption is expected to grow exponentially from a low base. KRBL has a long runway of growth ahead.
The company has demonstrated strong business performance over several decades and is the preferred Basmati rice brand globally. This formidable franchise is available at less than 10x operating earnings.
Listen to this session:
slide presentation audio recording
About the instructor:
Amey Kulkarni invests in the Indian Public Markets in companies deriving their competitive advantage from unique and / or innovative business models. This means bottom-up stock picking of businesses that don’t require external capital, have the ability to grow for several years in the future and are run by honest and hungry management. Amey partners with select individuals/trusts/family offices to manage their equity investments. Amey believes that patient capital is critical to success in the stock markets.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team