May 10

Bengal Tea & Fabrics Ltd.

·         Book Value – 62.5 Rs

·         Debt/Equity – 1.45

·         Current Ratio – 0.79

·         CMP – 40.95 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue	252.56	219.66	15%
Net Profit	12.53	11.46	1.07%
EPS	13.91 Rs	12.72 Rs
Dividend/Yield	2 Rs/4.9	1 Rs/4%

·         Public Shareholding – 27 %

·         Promoter Shareholding – 73 %

·         Pledged/Encumbered Shares – 0%

Short Term (1 month)

The price will rise in the short term due to good financials and good dividend yield. After the dividend ex-date, there will be sharp drop in the price. So this share can be bought purely on speculation.

Buy for Speculation gain

Long Term

This share is very good for long term investing. The dividend yield is good, and the yoy revenue increase is above 10% since the last 3 years. We can expect good financials for the next year also. But the price will drop after the ex-date, so it is better to wait for the share price to become stable for long term investing.

Wait for the ex-date fall and then accumulate around the range of 30 Rs.

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.