BNT is the leading bottlers company in Nepal from last 34 yrs. Its efficient management team, distribution network, intelligent marketing, diversified portfolio and large consumer base has helped them keep in front position when it comes to refreshment drinks.

Product line: BNT produces, sells and distributes the world’s most recognized beverage brands. Coca-Cola® Sprite®, Fanta®, Coke-Zero®, and Kinley® are some of the world’s best-selling nonalcoholic ready-to-drink beverages.

Financial: I would rate it 9/10 company has maintained a fair growth in terms of profitability. Company has installed new plant in 2075-76 so debt to equity is high at the movement. During the installation phase of plant production was shut down for 3 months in peak season so profitability growth was affected in that year. On the following year due to covid company couldnt make sufficient sales due to lockdown otherwise it was recording record growth just before the lockdown was imposed.After the installation of new plant their production capacity has increased so we can speculate on fact that their must be underlying growth plan inside the management head to met the production and sales gap. There are rumors company is expanding its business horizion to india. With the festive season coming up,lots of marriages in month of mangsir, hotels opening up and toursim industry slowly getting back to normal we can expect overall growth of sector and obviously the industry leader.

Valuation: 10/10 As of q4 report it is trading at below 25 pe. Its not justice to value of company based on earning made in difficult times like covid. So lets exclude last 2 yrs earnings and make an hypothetical eps of 800 in 1st quarter (i am downplaying here i expect even more) this makes this company silly cheap at valuation of below 15 pe. With assets of 8 arba and networth of 2200 we are taking here minimal risk. Since company is in debt of more than 3 arba do not expect big dividend unless the debt is clear. Pice to sales ratio is industry low.

Risk:(moderate risk) With interest rate rising company will have more liabilities and it may take more yrs to repay the loan. Due to government imposing high import tax in sugar, profitability may decrease.

More at: r/NepalStock by aadarsha2056

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