{"id":63959,"date":"2018-02-15T13:34:01","date_gmt":"2018-02-15T13:34:01","guid":{"rendered":"http:\/\/www.bnreport.com\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/"},"modified":"2018-02-15T13:34:01","modified_gmt":"2018-02-15T13:34:01","slug":"analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/","title":{"rendered":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up"},"content":{"rendered":"

MUMBAI: Value investors prefer buying stocks that are least favoured by most in the market. So, when Mohnish Pabrai, a US-based value investor with a wide following, bought a stake in rice exporter KRBL<\/a> on Monday, it raised eyebrows. Why has Pabrai bought KRBL, a stock that has soared 2,390 per cent in the past five years, and is considered richly valued after the run-up? <\/p>\n

That\u2019s the question many in the market are asking. Nonetheless, his purchases lifted the stock by 6.4 per cent to Rs 637.45 on Wednesday. <\/p>\n

A stock exchange disclosure on Monday said Pabrai\u2019s funds bought 2.7 per cent stake in the company on Monday at Rs 594 per share. He joins the list of foreign institutions and rich individuals including Anil Kumar<\/a> Goel who own stakes in the company. Goel and his wife, Seema, who have held the stock for a while, own 5 per cent in the company. <\/p>\n

The investment by Pabrai\u2019s funds is an example of moat investing, an investment strategy popularised by Warren Buffett<\/a>. In this approach, investors identify a company in sectors where competitors find it tough to replicate the strong earnings growth and margins for a long time. <\/p>\n

\u201cBasmati rice is a daily consumable, requires ageing cycle of 18-24 months, huge inventory holding power by serious players and a brand to sell to consumers. Very few companies in India pass this difficult litmus test<\/a>. This is the real moat in the business,\u201d said Manish Bhandari, CEO at Vallum Capital, a Mumbai-based portfolio manager. <\/p>\n

The stock is now 5.6 per cent away from the 52-week high level of Rs 673 that it had hit on December 21 last year. <\/p>\n

KRBL\u2019s net profit rose to Rs 399.4 crore in the financial year ended March 2017 from Rs 73 crore in FY12, while net sales improved to Rs 3,149 crore from Rs 1,631 crore in FY12. <\/p>\n

Despite the strong earnings performance, analysts said valuations of KRBL are stretched. \u201cAt this stage the stock is overvalued. The stock needs to correct to become more reasonably valued,\u201d said investment advisor Sandip Sabharwal who sees the fair value of the stock at Rs 450. <\/p>\n

G Chokkalingam, founder, Equinomics Research & Advisory said the fair value of the stock is between Rs 475 and Rs 500. <\/p>\n

\u201cFrom the low of 2014, the stock has multiplied nearly 20 times and valuations are stretched at over 30 times PE. Retail investors should be cautious,\u201d he pointed out. <\/p>\n

<\/a><\/strong> <\/a><\/p>\n

Original Article<\/a><\/p>\n

[contf]
\n[contfnew]
\n <\/p>\n

ET Markets<\/a><\/h5>\n

[contfnewc]
\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"

MUMBAI: Value investors prefer buying stocks that are least ..<\/p>\n","protected":false},"author":1,"featured_media":63960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-63959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nAnalysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report<\/title>\n<meta name=\"description\" content=\"MUMBAI: Value investors prefer buying stocks that are least ..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report\" \/>\n<meta property=\"og:description\" content=\"MUMBAI: Value investors prefer buying stocks that are least ..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/\" \/>\n<meta property=\"og:site_name\" content=\"Business News Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-15T13:34:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"181\" \/>\n\t<meta property=\"og:image:height\" content=\"276\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"infopal11\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BNReport\" \/>\n<meta name=\"twitter:site\" content=\"@BNReport\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"infopal11\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/\"},\"author\":{\"name\":\"infopal11\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\"},\"headline\":\"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up\",\"datePublished\":\"2018-02-15T13:34:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/\"},\"wordCount\":409,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Master-7.jpg\",\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/\",\"name\":\"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Master-7.jpg\",\"datePublished\":\"2018-02-15T13:34:01+00:00\",\"description\":\"MUMBAI: Value investors prefer buying stocks that are least ..\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Master-7.jpg\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Master-7.jpg\",\"width\":181,\"height\":276},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629\",\"item\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"name\":\"Business News Report\",\"description\":\"Latest News on the World of Politics & Business\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\",\"name\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"width\":200,\"height\":50,\"caption\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Business-NewsReport-328225811095934\\\/\",\"https:\\\/\\\/x.com\\\/BNReport\",\"https:\\\/\\\/www.instagram.com\\\/business.newsreport\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\",\"name\":\"infopal11\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/author\\\/infopal11\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report","description":"MUMBAI: Value investors prefer buying stocks that are least ..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/","og_locale":"en_US","og_type":"article","og_title":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report","og_description":"MUMBAI: Value investors prefer buying stocks that are least ..","og_url":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/","og_site_name":"Business News Report","article_publisher":"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","article_published_time":"2018-02-15T13:34:01+00:00","og_image":[{"width":181,"height":276,"url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg","type":"image\/jpeg"}],"author":"infopal11","twitter_card":"summary_large_image","twitter_creator":"@BNReport","twitter_site":"@BNReport","twitter_misc":{"Written by":"infopal11","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#article","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/"},"author":{"name":"infopal11","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f"},"headline":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up","datePublished":"2018-02-15T13:34:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/"},"wordCount":409,"commentCount":0,"publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg","articleSection":["Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/","url":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/","name":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up - Business News Report","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#primaryimage"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg","datePublished":"2018-02-15T13:34:01+00:00","description":"MUMBAI: Value investors prefer buying stocks that are least ..","breadcrumb":{"@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#primaryimage","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/Master-7.jpg","width":181,"height":276},{"@type":"BreadcrumbList","@id":"https:\/\/www.bnreport.com\/en\/analysts-wary-of-stretched-krbl-ace-buyers-lap-it-up\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629","item":"https:\/\/www.bnreport.com\/en\/"},{"@type":"ListItem","position":2,"name":"Analysts wary of \u2018stretched\u2019 KRBL, ace buyers lap it up"}]},{"@type":"WebSite","@id":"https:\/\/www.bnreport.com\/en\/#website","url":"https:\/\/www.bnreport.com\/en\/","name":"Business News Report","description":"Latest News on the World of Politics & Business","publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bnreport.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.bnreport.com\/en\/#organization","name":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a","url":"https:\/\/www.bnreport.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","width":200,"height":50,"caption":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","https:\/\/x.com\/BNReport","https:\/\/www.instagram.com\/business.newsreport"]},{"@type":"Person","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f","name":"infopal11","url":"https:\/\/www.bnreport.com\/en\/author\/infopal11\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/63959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/comments?post=63959"}],"version-history":[{"count":0,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/63959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media\/63960"}],"wp:attachment":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media?parent=63959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/categories?post=63959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/tags?post=63959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}