Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 8.
Description
Mrs. Bectors Food Specialities Ltd was incorporated as Quaker Cremica Foods Private Limited on September 15, 1995. # It manufactures biscuits and bakery products that are marketed under Mrs. Bector’s Cremica and Mrs. Bector’s English Oven brands, respectively. #
Mrs. Rajni Bector started the enterprise in 1978 by manufacturing ice creams, bread, and biscuits. It is promoted by Mr. Anoop Bector who has over 25 years of industry experience. He is also the Managing Director of the Company.
Main Points
Brand Reputation
The Company is one of the leading companies in the non-glucose biscuits and premium bread segment in North India, # and is one of the two key vendors, in India, working with institutions for the supply of processed and semi-processed dough-based offerings. #
It is also one of the leading biscuit brands in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir, and Ladakh, and ‘English Oven’ is one of the largest selling brands in the premium bakery segment in Delhi NCR, Mumbai and BengaluruSite:BECTORFOODMain Symbol:BECTORFOOD
Stock trades at 431.0, above its 50dma 405.64. However it is trading below its 200dma 448.52. The stock remains weak though short term bullish momentum supports price action. It needs to close above 448.52 for bullish price action to continue
The 52 week high is at 629.80 and the 52week low is at 328.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 37.49 to 29.83 days.
Weakness
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Competition
– The industry trades at a mean P/E of 52.1x. Tasty Bite Eat. trades at the industry’s max P/E of 122.84x. BECTORFOOD trades at a P/E of 35.1x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. BECTORFOOD has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 7.6%. The max 1- month return was given by Tasty Bite Eat.: a return of 22.85 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 224.0 cr compared to Rs 203.0 cr for period ended Dec 2019, a rise of 10.3%
Operating Profits reported at Rs 29.0 cr for period ended Mar 2021 vis-vis 28.0 for period ended Dec 2019 .
Operating Margins contracted -84.7 bps for period ended Mar 2021 vis-vis Dec 2019 .
The EPS for Mar 2021 was Rs 2.17 compared to Rs 3.52 for previous quarter ended Dec 2020 and Rs 1.95 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 881.0 cr for period ended Mar 2021 vis-vis sales of Rs 762.0 cr for the period ended Mar 2020, a healthy growth of 13.5%. The 3 year sales cagr stood at 8.4%.
Operating margins expanded to 16.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 72.0 cr for period ended Mar 2021 vis-vis sales of Rs 30.0 cr for the period ended Mar 2020, rising 58.3%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 110.0 cr for period ended Mar 2021 vis-vis Rs 0.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 14.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 138% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.71% vis-vis 2.92% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 39.93% vis-vis 38.41% for Dec 2020
Conclusion
– Debtor days have improved from 37.49 to 29.83 days. –
