Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 5.
Description
Tasty Dairy was incorporated in 1992 as a private limited company # and was converted into a public limited company named “Tasty Dairy Specialities Limited” in 2004. It handles the manufacturing of milk and milk-based products and is involved in processing milk, along with bulk milk procurement which primarily caters to bulk and marquee institutional customers.
Main Points
Products and Customers
Institutional Products: (Majority of the revenue comes from these-75%) #
Sold by institutional customers: Nutrition supplements and formulations for baby food, specialty milk powders, etc. to Mother Dairy, Kwality Dairy Limited, and others.
Sold by institutional customers under their own brands: full cream milk, toned milk, etc. to Gujarat Cooperative Milk Marketing Federation Limited (GCMMFL) & Banaskantha District Cooperative Milk Producers Union Limited (BDCMPUL).Site:540955Main Symbol:TDSL
Stock trades at 31.9, above its 50dma 30.87. It also trades above its 200dma 26.49. The stock remains bullish on techicals
The 52 week high is at 41.95 and the 52week low is at 17.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.90 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of -1.52% for last 3 years.
-Debtor days have increased from 42.45 to 59.12 days.
Competition
– The industry trades at a mean P/E of 52.0x. Tasty Bite Eat. trades at the industry’s max P/E of 125.29x. 540955 trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. 540955 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 5.2%. The max 1- month return was given by Tasty Bite Eat.: a return of 25.31 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 62.0 cr compared to Rs 103.0 cr for period ended Mar 2020, a fall of 39.8%
Company reported negative operating profit of Rs -23.0 cr for period ended Mar 2021. For same period last year, operating profit was 2.0
The EPS for Mar 2021 was Rs -8.14 compared to Rs 0.31 for previous quarter ended Dec 2020 and Rs -0.34 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 328.0 cr for period ended Mar 2021 vis-vis sales of Rs 403.0 cr for the period ended Mar 2020, a fall of 22.9%. The 3 year sales cagr stood at -0.4%.
Operating margins shrank to -4.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, contraction of 700.0 bps.
Net Profit reported at Rs -14.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, falling 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 -19.0% compared to -2.0% over the last 3 Years. – The stock has given a return of 84% 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 -19% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -391% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.51% vis-vis 25.51% for Mar 2021
Conclusion
– Stock is trading at 0.90 times its book value – has low interest coverage ratio.
– has a low return on equity of -1.52% for last 3 years.
-Debtor days have increased from 42.45 to 59.12 days.
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 30.87 and is trading at 31.9, thus bullish price action wise.
