Few Pointers on the Stock:
- 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.
- Strong Brands under their belt - Some of these are household names in India with good brand recall.
- 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).
- 11 new product launches in the last year (mostly variants & extensions of existing products)
- In the recent quarter, the company saw a strong recovery in sales with 10% volume growth. EBITDA & PAT were also up.
- 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.
- Their International Business also witnessed double-digit sales growth and now contributes to 5% of its overall sales.
- Advertisement Spend of the company is around 13% of its overall sales. It is on the higher end owing to their new products push.
- 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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