Tasty Bites – Q4FY20 – Dialwealth

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Another solid set of result declared by Tasty bites in Q4FY20.

Company declared highest ever operating revenue despite loosing last 7 days of work due to covid-19 shutdown.

Revenue 115 Cr vs 85 cr YOY
Pat 8.5 cr Vs 8cr YOY

Optically PAT appears flat due to lower other income(export incentive) reported in Q4 Vs Q3,company doesn’t have any other source of other income,this rebate received is lumpy in nature and is spread across the quarters,historically it is between 6-7% of sales for tasty bites and it is not evenly distributed in quarters and hence quarterly number also looks lumpy many times.

For the year FY20 sales are up by 30% to 424 Cr Vs 336 Cr

Profit after tax is also up by 30% to 40 Cr Vs 30 Cr.

Going forward we expect tasty bites to report even better growth in numbers(barring Q1FY21) which might be impacted by corona virus shutdown which happened across the globe & disrupted the entire supply chain,however as supply chain and distribution network are back on track which by now are back more then 90%till May 15th 2020 we expect company to start reporting solid growth once again.

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Company is also undergoing a big capacity expansion which should more than double the companies manufacturing capacity & should complete in next few months and help company to report even better growth rate going forward.

Tasty bites has one the strongest promoter in food industry(Mars Inc) and once new capacity comes into play tasty bites will leverage on mars strong distribution network across the globe and deliver exponential growth going forward.

As far as valuations are concerned stock is always likely to trade at big premium compared to its peers due to various factors like strong multinational promoter(mars inc),strong brand,superior distribution network across the globe and high growth rate.

Those who wish to join our turbo plan can whatsapp us your name to 9930441584.

We @Dialwealth recommend investors to accumulate tasty bites on every decline and one can expect steady compounding returns for many years to come.

Tasty bites has all the ingredients in place to deliver superior growth and stable returns to investors over medium to long term.

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Jimit Shah
Prefers growth vs value | Can’t understand complex balance sheet
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