Mehabe score: 2 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Anjani Foods Limited (AFL) is one of the leading bakery food-on-the-go retailers & bakery product distributors in Andhra Pradesh # It belongs to the Anjani Vishnu group, which has a long presence across various sectors like cement, ceramic tiles, educational institutes, etc. The company intends to provide a high-end bakery experience and be a hangout spot for the millennial generation.
Main Points
Key Person Highlights
Mr. D.Venugopal has been appointed as the Chief Financial Officer with effect from Feb 2021 #Site:511153
Market Cap:
Rs 156 cr
Price:
279.0
Trading pe:
51.8x
Book-value:
22.0/share
Div yield:
0.00 %
Earning yield:
1.05%
Face-value:
10.0/share
52week high:
409.10
52week low:
20.50
Technical Analysis
Stock trades at 279.0, below its 50dma 288.85. However it is trading above its 200dma 186.43. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 288.85.
The 52 week high is at 409.10 and the 52week low is at 20.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 12.67 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 12.38% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.2.19 Cr.
Competition
– The industry trades at a mean P/E of 49.0x. Hindustan Foods trades at the industry’s max P/E of 116.37x. 511153 trades at a P/E of 51.8x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 511153 has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 1.2%. The max 1- month return was given by KRBL: a return of 12.09 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.82 cr compared to Rs 6.51 cr for period ended Mar 2020, a rise of 20.1%
Operating Profits reported at Rs 0.01 cr for period ended Mar 2021 vis-vis 0.21 for period ended Mar 2020 .
Operating Margins contracted -309.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.42 compared to Rs 0.55 for previous quarter ended Dec 2020 and Rs -0.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 29.1 cr for period ended Mar 2021 vis-vis sales of Rs 27.54 cr for the period ended Mar 2020, a growth of 5.4%. The 3 year sales cagr stood at 13.5%.
Operating margins expanded to 6.67% for period ended Mar 2021 vis-vis 4.72% for period ended Mar 2020, expansion of 195.0 bps.
Net Profit reported at Rs 3.01 cr for period ended Mar 2021 vis-vis sales of Rs 0.48 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 1289% on a 1 Year basis vis-vis a return of 136% over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 527% vis-vis a compounded profit growth of 170% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.0% vis-vis 25.0% for Dec 2020
Conclusion
– – Stock is trading at 12.67 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 12.38% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.2.19 Cr.
