Add-shop promotion- "entered into fmcg"

ADD-SHOP PROMOTION-

Current Market Cap Rs 110 Cr.
FY 23 DATA
Revenue Rs 200 Cr
EBITDA Rs 28 Cr
Margin 15%
PAT Rs 19 Cr

Add Shop Retail sales in growing since last 3 years. Margin is also good. Add Shop retail sell - one promoter held company products through listed entity.
Current Products are Herbal Products for daily used and Herbal Medicines for all age group.

In August they entered in FMCG business and they launched 3 products of Tea, Coffee & Green Tea. In latest interview MD- said products can increased to 1200 products going forward as per need & demand of customers.

Currently more than 1,40,000 Business Associates & 2,300 Franchise across India.
New R&D Facility is established by Promoter held entity for new products R&D.

Company is available at 5 PE.
In last two years 18 PE shrink to 5 PE. but now as company will expand in FMCG Business &
Ayurvedic Medicine Business will grow . PE should rerate at least to 10.
This is my personal view .

||Mar 2016|Mar 2017|Mar 2018|Mar 2019|Mar 2020|Mar 2021|Mar 2022|Mar 2023

|Sales +|2|5|12|22|37|78|156|200|
|Expenses +|2|4|12|21|35|67|131|171|
|Operating Profit|0|0|0|2|3|11|25|29|28|
|OPM %|2%|5%|3%|8%|7%|15%|16%|15%|
|Profit before tax|0|0|0|1|2|10|23|27|27|
|Tax %|100%|33%|28%|27%|30%|25%|19%|30%||
|Net Profit +|0|0|0|1|1|8|19|19|18|
|EPS in Rs|||2.56|0.23|0.31|1.99|4.96|6.77|6.53|

Please do your own research before investing.

1 Like

Company is looking good and currently available at value buy (at price to book of 1 and ROE at 26.2% and Return on Market Cap is 17%) and compare to other expensive valuation of small cap stocks. Thanks for sharing i am buying small quantities and doing the further research.

it really started underperforming after the rights issue. the sales has been flattish for the last 7 quarters and it looked the prices went northward only for the rights issue, then been in downward movement.

disc: Invested

Before 2,3 days I think 3 to 4 directors have resigned. Company statement is not satisfactory