Mehabe score: 6 G Factor: 2 Piotski Score: 5 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 5.
Description
Tasty Bite Eatables is in the business of manufacturing and selling Prepared Foods.Site:TASTYBITEMain Symbol:TASTYBIT
Stock trades at 20398.0, above its 50dma 15850.6. It also trades above its 200dma 13854.99. The stock remains bullish on techicals
The 52 week high is at 19519.50 and the 52week low is at 9801.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has a good return on equity (ROE) track record: 3 Years ROE 24.66%
Weakness
– Stock is trading at 25.33 times its book value
– might be capitalizing the interest cost
-Earnings include an other income of Rs.18.98 Cr.
Competition
– The industry trades at a mean P/E of 51.4x. Tasty Bite Eat. trades at the industry’s max P/E of 133.05x. TASTYBITE trades at a P/E of 133.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. TASTYBITE has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 9.0%. The max 1- month return was given by Tasty Bite Eat.: a return of 32.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 122.0 cr compared to Rs 115.0 cr for period ended Mar 2020, a rise of 6.1%
Operating Profits reported at Rs 21.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins expanded 590.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 54.05 compared to Rs 52.57 for previous quarter ended Dec 2020 and Rs 33.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 385.0 cr for period ended Mar 2021 vis-vis sales of Rs 426.0 cr for the period ended Mar 2020, a fall of 10.6%. The 3 year sales cagr stood at 9.2%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 39.0 cr for period ended Mar 2021 vis-vis sales of Rs 41.0 cr for the period ended Mar 2020, falling 5.1%.
Company recorded a healthy Net Profit CAGR of 14.5% 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 40.0 cr for period ended Mar 2021 vis-vis Rs 37.0 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 21.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 59% on a 1 Year basis vis-vis a return of 41% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -4% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.64% vis-vis 3.67% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 21.62% vis-vis 21.57% for Dec 2020
Conclusion
– has a good return on equity (ROE) track record: 3 Years ROE 24.66% – Stock is trading at 25.33 times its book value
– might be capitalizing the interest cost
-Earnings include an other income of Rs.18.98 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 15850.6 and is trading at 20398.0 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
