Mehabe score: 5 G Factor: 3 Piotski Score: 3 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 3 and Piotski score of 3.
Description
Dangee Dums is a purveyor of western dessert products. The brand began its journey on August 13, 2010 as a boutique store of high-end chocolates. Since then, the brand has pivoted to a cakery format to best exploit available growth opportunities. The brand has found its niche in democratizing consumption of high quality cakes and pastries.Site:DANGEEMain Symbol:www.nseindia.com
Stock trades at 199.0, above its 50dma 188.11. It also trades above its 200dma 165.54. The stock remains bullish on techicals
The 52 week high is at 205.00 and the 52week low is at 92.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 10.79 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.57% for last 3 years.
-Earnings include an other income of Rs.1.21 Cr.
-Debtor days have increased from 27.28 to 45.08 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.23%
Competition
– The industry trades at a mean P/E of 38.5x. Hatsun Agro trades at the industry’s max P/E of 108.99x. DANGEE trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. DANGEE has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -7.5%. The max 1- month return was given by Dangee Dums: a return of 4.82 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 5.13 cr compared to Rs 3.55 cr for period ended Sep 2020, a rise of 44.5%
Company reported operating profit of Rs 1.21 cr for period ended Sep 2021, operating profit margin at 23.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs -2.01 compared to Rs -1.15 for previous quarter ended Jun 2021 and Rs -2.45 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.77 cr for period ended TTM vis-vis sales of Rs 13.44 cr for the period ended Mar 2021, a healthy growth of 24.4%. The 3 year sales cagr stood at -22.6%.
Operating margins expanded to 10.86% for period ended TTM vis-vis -6.32% for period ended Mar 2021, expansion of 1718.0 bps.
Net Profit reported at Rs -6.61 cr for period ended TTM vis-vis sales of Rs -10.04 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -31.0% compared to -9.0% over the last 3 Years. – The stock has given a return of 25% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -62% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is -305% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 10.79 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.57% for last 3 years.
-Earnings include an other income of Rs.1.21 Cr.
-Debtor days have increased from 27.28 to 45.08 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.23%
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 188.11 and is trading at 199.0 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
