Mehabe score: 5 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & 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 2 and Piotski score of 4.
Description
Foods and Inns is a multi-locational manufacturer and exporter of a range of processed Tropical fruits pulps, purees and vegetables with state of the art factories in Mumbai, Chittor, Valsad, Sinnar and Gonde (Nasik).Site:507552
Market Cap:
Rs 296 cr
Price:
58.9
Trading pe:
75.4x
Book-value:
36.2/share
Div yield:
0.00 %
Earning yield:
3.51%
Face-value:
1.00/share
52week high:
65.00
52week low:
44.50
Technical Analysis
Stock trades at 58.9, above its 50dma 53.19. It also trades above its 200dma 51.69. The stock remains bullish on techicals
The 52 week high is at 65.00 and the 52week low is at 44.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.04% over past five years.
– has a low return on equity of 7.53% for last 3 years.
-Earnings include an other income of Rs.10.64 Cr.
Competition
– The industry trades at a mean P/E of 39.0x. Hindustan Foods trades at the industry’s max P/E of 122.03x. 507552 trades at a P/E of 75.4x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 507552 has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 5.8%. The max 1- month return was given by Foods & Inns: a return of 17.33 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 371.0 cr for period ended Mar 2021 vis-vis sales of Rs 392.0 cr for the period ended Mar 2020, a fall of 5.7%. The 3 year sales cagr stood at 3.5%.
Operating margins shrank to 6.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, falling 175.0%.
Company recorded a healthy Net Profit CAGR of 10.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 15.0 cr for period ended Mar 2021 vis-vis Rs -2.0 cr for period ended Mar 2020
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 2.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 19% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -64% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 54.8% vis-vis 54.8% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.04% over past five years.
– has a low return on equity of 7.53% for last 3 years.
-Earnings include an other income of Rs.10.64 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 53.19 and is trading at 58.9 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
