Mehabe score: 3 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. 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 5 and Piotski score of 5.
Description
Galaxy Cloud Kitchens Limited is engaged in manufacturing of food products (Viz bakery, desserts, confectionery, meals, ready to eat food.) The Company has manufacturing facilities at five location and sells primarily in India.#
Main Points
Product Portfolio
Its product portfolio includes bakery, confectionery, dairy, HMC, Eggs & non-veg and snacks products.#Site:506186
Market Cap:
Rs 68.8 cr
Price:
15.3
Trading pe:
x
Book-value:
0.06/share
Div yield:
0.00 %
Earning yield:
-14.21%
Face-value:
10.0/share
52week high:
20.55
52week low:
7.86
Technical Analysis
Stock trades at 15.3, above its 50dma 14.46. It also trades above its 200dma 14.46. The stock remains bullish on techicals
The 52 week high is at 20.55 and the 52week low is at 7.86
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 245.55 times its book value
– has low interest coverage ratio.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.44%
Competition
– The industry trades at a mean P/E of 24.5x. Saregama India trades at the industry’s max P/E of 47.58x. 506186 trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 506186 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Saregama India: a return of 23.61 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.62 cr compared to Rs 12.78 cr for period ended Mar 2020, a fall of 24.7%
Company reported operating profit of Rs 1.44 cr for period ended Mar 2021, operating profit margin at 15.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.12 compared to Rs 0.02 for previous quarter ended Dec 2020 and Rs -1.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 30.25 cr for period ended Mar 2021 vis-vis sales of Rs 68.6 cr for the period ended Mar 2020, a fall of 126.8%. The 3 year sales cagr stood at -9.3%.
Operating margins expanded to -6.74% for period ended Mar 2021 vis-vis -18.03% for period ended Mar 2020, expansion of 1129.0 bps.
Net Profit reported at Rs -5.62 cr for period ended Mar 2021 vis-vis sales of Rs -17.92 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -797.0% compared to 0% over the last 3 Years. – The stock has given a return of -19% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -54% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is 38% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 51.13% vis-vis 51.13% for Dec 2020
Conclusion
– – Stock is trading at 245.55 times its book value
– has low interest coverage ratio.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.44%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 14.46 and is trading at 15.3, thus bullish price action wise.
