I think BKL is one of the better businesses on the ASX and I...

I think BKL is one of the better businesses on the ASX and I also think it is well run.
They are going into some new markets and I think this will always be a bumpy ride. I think not branching out into new areas however would be a bigger mistake.
I've just topped up a small holding with a few more with the capacity to buy again with further weakness - patience is needed.
By my reading they made NPAT of 15m in Q317 (or 87 cents) and reading between the lines to me indicates a FY2017 of around $3.20/share. So on current pricing it is 27PE - a figure that is reasonably high.
The concern for me in the latest figures was the apparent drop of profit margin from over 11% to under 9%. I'm feeling this was more due to invested costs in the business than reducing margins on sales.
The key issue for me is where will the business be in 3-5 years and my view is that earning will be $4.50+ in three years time with risk more to the upside.