BFL.N0000 (Bairaha Farms PLC)

[yellow knifeTop contributor]

When I first purchased this share it was a loss making company in 2006. Floods have affected to a farm as I recall the reasons. Company was not paying dividends. Yet the company was well managed and faced many obstacles like grain price hike in 2008 etc.

Revenue is growing slowly and steadily.

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[yellow knifeTop contributor]

2011 and 2012 were very good  for the profit of the company.


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[yellow knifeTop contributor]

Net assets position is reaching a plateau


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[yellow knifeTop contributor]

EPS too recorded best in 2011 and 2012


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[yellow knifeTop contributor]

2011 was a bubble for many shares  and Bairaha was not an exception


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[yellow knifeTop contributor]

Company pays dividends when EPS is good and 2010 was the best

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[yellow knifeTop contributor]

Market Value was rather stable and from time to time bubbles can be expected making some traders rich and some poor.


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[yellow knifeTop contributor]

If we compare Keels Food Products with Bairaha in revenue, it shows Bairaha is well managed

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[Ethical TraderTop contributor]

Thanks. You give facts & let members think about it unlike some others who promote on the sly.

[yellow knifeTop contributor]

But if we see the Food and Beverage the meat suppliers are dwarfed by beverages and love to see the fight between Soft Drinks and Beer

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[Ethical TraderTop contributor]

Bubbles are man made. ?Arn't they.

Market Value was rather stable and from time to time bubbles can be expected making some traders rich and some poor.


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[yellow knifeTop contributor]

Yes

ET

Let me start up a thread specifically for bubbles


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[eagle]

thanks mr yellow knife.. good analyse
but those who bought shares in 2011 are still poor, what a pathetic chart!!!!

[BullvsBear]

BFL Results out...Sep. Qtr ended EPS Rs 8.96 /-

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[Future123Active Member]

Very good results as expected. GRAN and TAFL to follow.

BFL 6 months EPS (April to Sept) Rs. 18/=
3 months EPS (July to Sept) Rs. 9/=

Still a long way to go......

[Monster]

BFL was able to increase the revenue while maintain the cost of sales lower. As per the latest financial statement, this poultry share worth at least Rs 300/-.

[yellow knifeTop contributor]

Yes results are really impressive.

Small was predicting this using technical analysis.

It's real that FMCG honeymoon is prevailing at the moment. Can it continue ?

[First Guy]

Yes results are really impressive.

Small was predicting this using technical analysis.

It's real that FMCG honeymoon is prevailing at the moment. Can it continue ?

I don't think results can be predicted using technical analysis but price trends.

Even next quarter or two will also have good EPS. There could be a higher tax charge in March quarter. At this point BFL will have a good TTM EPS but thereafter it should have growth to move further. Also the current positive situation should also sustain for it to not come down again. Will that happen?

[smallvilleTop contributor]

Yep its price trends..

Thre will be short term turmoils as many ppl take profits above 230.. isnt it obvious? thats' 10-20% for many from 190-200 levels. So BFL will crawl back to 220s..

But that will ease RSI pressure and can stagnate for days.. Intelligent investors may enter when price cool off.

[sashimaalTop contributor]

Corporate Disclosure:

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[smallvilleTop contributor]

In the absence of foreign shareholder its a 50-50 partnership.

So the first stage of Feed mill project involves 1.9 to 2.7 bn capital and 36 acres of land in Kurunegala was done by Windsor Real estate ltd in Oct 2012. And Fortune Agro has taken the land on lease.

For the second stage of 350 mn, BFL again invests 25 million and on a loan to settle with expected dividends from Fortune G-P Farms.

[yellow knifeTop contributor]

Just though of putting these charts which I did in November  2015

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[sashimaalTop contributor]

Bairaha and connected parties investing heavily in feed milling
Big player reaching out for vertical integration

Bairaha Farms PLC, a lead player in Sri Lanka’s poultry industry, has made some changes in its plans for its Rs. 1.65 billion feed-milling project to be located on a 36-acre site in the Kurunegala district, the company said in a stock exchange filing last week.

It was originally planned that Bairaha and its associate, Farm’s Pride (Pvt.) Ltd. will take 45% each of Fortune Agro Industries (Pvt) Ltd., the joint venture feed milling company while a foreign shareholder will take the balance 10%. The expected foreign investment has not come through and the other two partners have decided to make good this lag by increasing their equity stake to 50% each, the filing said.

It has also been earlier decided that only stage one of the project will be initially undertaken but the need to have additional raw material storage capacity earlier than planned had led to the decision that stage two will also be now undertaken.

In its last annual report, Bairaha’s MD/CEO said that the setting up of the animal feed production factory will complete the integration and strengthen the group in the poultry sector.

Once the feed mill is completed, hopefully by the third quarter of this year, "we will have almost a total vertically integrated poultry production operation," he said.

Another joint venture company within the group, Windsor Real Estate Ltd., had in October 2012 invested in the 36-acre Kurunegala property. This land has been leased from Windsor by Fortune Agro Industries to set up the feed mill.

Changes in the project structure had necessitated cost revisions (excluding land) with modern flat warehouse storage facilities for both raw materials and finished feed requiring working capital of between Rs. 800 million and Rs. 1.6 billion mostly for purchase and storage of raw materials as needed. This has boosted total funding requirements to between Rs. 1.9 billion and Rs. 2.7 billion.

Bairaha also said that there was escalation in the cost of fixed assets due to underestimated cost of civil construction.

"Funding for working capital will be undertaken by the joint venture, Fortune Agro Industries (Pvt) Ltd. on guarantees to be given by the joint venture partners, Bariaha Farms PLC and Farm’s Pride (Pvt) Ltd.," the filing said.

The plans now include the installation of state-of-the-art grain silos for bulk storage of maize and soya bean meal along with raw materials conveying and escalator systems and a maize dryer.

These will expand the feed mill’s maize and soya storage capacity enabling stocking of seasonal raw materials at competitive prices and further automation of the milling operation.

This entails a further estimated cost of Rs. 350 million on two maize silos of 6,000 mt each capacity and two soya silos of 485 mt each and a conveying and elevator system. The construction cost and foundation has been estimated at Rs. 128 million.

The funding will come from loan or equity investment by Fortune G-P Farms Lanka Ltd. or reinvestment of future dividends to be received from Fortune by Bairaha and Farm’s Pride. These two companies will also make additional investments of Rs. 25 million each while Fortune Agro Industries will borrow Rs. 100 million.

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[sashimaalTop contributor]

Not only the best machinery counts; a clean and efficient building with modern state-of-the-art commercial animal feed manufacturing factory also matters. Bairaha Farms Plc did just that by purchasing machinery from ‘Buhler’ a Switzerland company to set up the new factory in the Kurunegala district as a large scale modern feed mill in the country at a cost of Rs. 1.65 billion on a 36-acre site.

Chief Executive Officer, Managing Director of the company Yakooth Naleem told the Business Times that the new factory will commence production within the next two months following the availability of raw material (adequate stocks of maize) supplied by local farmers.
The government has given an assurance that it will allow Bairaha to import maize if there is a short supply in the local market, he revealed.
The company has made some changes in its plans for its feed-milling project, the company said in a stock exchange filing recently.

It was originally planned that Bairaha and its associate, Farm’s Pride (Pvt.) Ltd. will take 45 per cent each of Fortune Agro Industries (Pvt) Ltd, the joint venture feed milling company while a foreign shareholder will take the balance 10 per cent.It has also been earlier decided that only Stage 1 of the project will be initially undertaken but the need to have additional raw material storage capacity earlier than planned had led to the decision that Stage 2 will also be now undertaken, he added.

Another joint venture company within the group, Windsor Real Estate Ltd, had in October 2012 invested in the 36-acre Kurunegala property. This land has been leased from Windsor by Fortune Agro Industries to set up the feed mill.Changes in the project structure had necessitated cost revisions (excluding land) with modern flat warehouse storage facilities for both raw materials and finished feed requiring working capital of between Rs. 800 million and Rs. 1.6 billion mostly for purchase and storage of raw materials as needed.

This has boosted total funding requirements to between Rs. 1.9 billion and Rs. 2.7 billion.Mr. Naleem said that there was an escalation in the cost of fixed assets due to underestimated cost of civil construction.”Funding for working capital will be undertaken by the joint venture, Fortune Agro Industries (Pvt) Ltd. on guarantees to be given by the joint venture partners, Bairaha Farms PLC and Farm’s Pride (Pvt) Ltd,” he added.
The plans now include the installation of state-of-the-art grain silos for bulk storage of maize and soya bean meal along with raw materials conveying and escalator systems and a maize dryer.

These will expand the feed mill’s maize and soya storage capacity enabling stocking of seasonal raw materials at competitive prices and further automation of the milling operation.This entails a further estimated cost of Rs. 350 million on two maize silos of 6,000 MT each capacity and two soya silos of 485 MT each and a conveying and elevator system. The construction cost and foundation has been estimated at Rs. 128 million, he disclosed. The funding will come from loan or equity investment by Fortune GP Farms Lanka Ltd or reinvestment of future dividends to be received from Fortune by Bairaha and Farm’s Pride. These two companies will also make additional investments of Rs. 25 million each while Fortune Agro Industries will borrow Rs. 100 million.

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[The AlchemistTop contributor]

BAIRAHA FARMS - DIVIDEND ANNOUNCEMENT
BAIRAHA FARMS PLC
Company ID: - BFL
Date of Announcement: - 20.May.2016
Rate of Dividend: - Rs. 4.00 per share /Final Dividend
Financial Year: - 2015/2016
XD: - 01.Jun.2016
Payment: - 10.Jun.2016
Share Transfer Book Open