The shares of a consumer food company hit the 20 percent upper circuit on Tuesday’s intraday trades to reach a new 52-week high of ₹ 17300.80 apiece, following stellar results for the April to June quarter (Q1FY24) of the financial year 2023-24. Its shares were locked at ₹ 17300.80 apiece on the National Stock Exchange (NSE).
Tasty Bite Eatables reported a 173.85 percent increase in its net profit to ₹ 21.36 crores in the April to June quarter (Q1FY24), compared to ₹ 7.80 crores in the corresponding quarter last year (Q1FY23). Its revenue from operations ascended 29.84 percent to ₹ 153.47 crores in the latest quarter, when compared to ₹ 118.20 crores in Q1FY23.
The company manufactures ethnic and natural vegetarian packaged and ready-to-eat/serve food products, which are sold under the “Tasty Bite” brand in the United States of America, Australia, the United Kingdom, Germany and Canada.
In the past six months, its share price increased by 87.60 percent. It has delivered multibagger returns of 105 percent in the past five years. Thus, if an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 2.05 lakhs today!
With a market capitalization of ₹ 3,699 crores, Tasty Bite Eatables is a small-cap company. It has a low return on equity of 13.12 percent and an ideal debt-to-equity ratio of 0.55. Its shares were trading at a price-to-earnings ratio (P/E) of 84.52, which is higher than the industry P/E of 15.19, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 74.23 percent stake in it, followed by retail investors with 22.16 percent and foreign institutions with 3.61 percent.
Written by Simran Bafna
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