Bombay Burmah Trading Corporation Ltd.
ISIN: INE050A01025 • Market Cap: ₹10,091 Cr
The 5-Pillar Quality Audit for Bombay Burmah Trading Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (17.8%), Return on Capital Employed (34.1%), and equity compounding (17.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.22 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.2%) and 3Y PAT CAGR (59.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 7.82 vs PEG of 0.71 and Dividend Yield of 1.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.0%, backed by 10.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 34.1%)
Bombay Burmah Trading Corporation Ltd. generates exceptional return on capital employed of 34.1%, reflecting pricing power and competitive moat.
High-Velocity Profit Compounding (3Y PAT CAGR: 59.9%)
Net earnings have compounded at 59.9% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 7.82)
Trading at a P/E multiple of 7.82, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking BBTC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 79/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Fast Moving Consumer Goods Sector Peer Comparison
Compare BBTC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bombay Burmah Trading Corporation Ltd. (BBTC)Current | 79/100 | ₹10,091 Cr | 7.82 | 34.1% | 0.22 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Bombay Burmah Trading Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Bombay Burmah Trading Corporation Ltd. (BBTC)?
Bombay Burmah Trading Corporation Ltd. has a RupeeTools Fundamental Score of 79/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (81/100), Financial Health (77/100), Growth (78/100), Valuation (85/100), and Ownership Quality (72/100).
Q:Is BBTC fundamentally strong for long-term investment?
Yes, BBTC exhibits solid fundamental strength with a 79/100 score, driven by a return on equity of 17.6% and a debt-to-equity ratio of 0.22.
Q:Does BBTC pass the Coffee Can Investing filter?
No. BBTC does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does BBTC compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, BBTC trades at a P/E of 7.82 and generates an ROCE of 34.1%. Compare its 5-Pillar score of 79/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.