Stock of the Week (Jan 09, 2022) || A Leading Consumer Wellness Player || Finvezto Top 100

A Leading Consumer Wellness Player || Finvezto Top 100 with Key Levels

Few Pointers on the Stock:

  1. Market Leader in the Food Sweetener segment with 96% Market Share. Not only that, it continues to hold a leadership position in 5 of its 7 brands. That’s commendable.
  2. Strong Brands under their belt - Some of these are household names in India with good brand recall.
  3. Extensive distribution network with 1700 distributors with a direct reach of 5.5 lac retail outlets (up from 3.5 lac outlets a year and a half ago).
  4. 11 new product launches in the last year (mostly variants & extensions of existing products)
  5. In the recent quarter, the company saw a strong recovery in sales with 10% volume growth. EBITDA & PAT were also up.
  6. The company has increased the prices of certain products owing to the steep commodity inflation. It has already hiked the prices of some of its brands by 2-3%. There could be further price hikes to pass on the effect of commodity inflation directly to its customers.
  7. Their International Business also witnessed double-digit sales growth and now contributes to 5% of its overall sales.
  8. Advertisement Spend of the company is around 13% of its overall sales. It is on the higher end owing to their new products push.
  9. The Stock has fallen around 25% from its recent highs. We will look at the key levels in the report below.

Link to Detailed Report
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