Saturday, February 27, 2010

Tasty Bite Eatables (BSE CODE 519091) - A Worth Buy













Media and analysts are often give publicity to a company only after it has grown substantially and leave very little on the table for retail investors. We have seen this many times in the past like in the case of TRF , Bajaj Electricals .etc. Tasty Bite Etables (TBE) seems to be such a story which is yet to be unfold. TBE (BSE CODE -519091) is now promoted by Preferred Brand Foods India Pvt.Ltd which is the Indian arm of US based Preferred Brand Foods Inc. Promoters hold close to 75% share in this microcap (total equity is just 2.56 crore) Two Hyderabad based investors also holding another 6% in this company.Total share holders of this company altogether is only 1648 as per December share holding pattern ,which makes it a low liquid counter.

The company is based in Pune, India,manufactures and markets a range of shelf stable, all-natural, ready-to-serve ethnic food products under Tasty Bite brand name. The company offers Indian and Thai food products, including entrees, meals, rice, and sauces. It also produces special diets, such as vegetarian, gluten-free, kosher, and vegan foods.95% of its income coming from exports . In India the company markets its products to institutional users, including hotels, quick-service restaurants, and other retail and corporate customers. .
Company is performing exceedingly well in recent years and its product getting very good response from US customers. Now ,Tasty Bite is the largest selling Indian Ethnic Food Brand in US.
Even in a difficult qtr for almost all export companies due to unfavorable $ value ,company could post more than Rs.7 /- EPS in December qtr v/s a loss in last year same qtr. For the nine months ended December ,company posted an EPS close to RS.20 v/s a loss of Rs.2/- in last year.

At a time of rising food prices world over ,cost of raw materials is playing a major role in food companies profit. Tasty bite is procuring more than 60% of vegetables from company’s own farms which is located in Pune , is an added advantage for the company.
Company is expected to post an EPS more than Rs.25/- in the full year v/s Rs.5.5 in last year. Tasty Bite is lead by Ashok Vasudevan and Ravi Nigam both having vast experience in this field and headed companies like Pepsico and Britannia in India. Considering the pace of its growth and commitment shown by the management it should be a dark horse and should touch atleast Rs.400 – 500 in future.CMP is 165

More details about the company is available from :

For US operations : www.tastybite.com

For Australian operations : www.tastybite.com.au/

5 comments :

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    ReplyDelete
  2. Hi Valuepick,

    I really found this company interesting....it really fits into Warren buffet kind of investment stock?
    I have one query....can this company take advantage of food scarcity scenario in future?
    Response requested......

    Regards,
    Vikas

    ReplyDelete
  3. KOPRAN bse code 524280@42/= is a great turnaround story of 2010.Exactly the same happend with LUPIN when it was quoting at 62/= way back in 2002 and looking at the low price I bought the stock in huge quantity.Lupin is now trades at 1900+ ex 1:1 bonus.I feel same thing is happening here with KOPRAN and looks super multibagger from hereon.In fact,it is another LUPIN in making.Good opportunity to grab such stocks and held on for super duper profits.Cheers.

    ReplyDelete
  4. Hi Valuepick,

    Can you comment on Tasty Bite at CMP, it's available at almsot half the price of it's 52 week high. What are your thoughts on the future prospect of this company, please advise.

    With warm regards..

    ReplyDelete
  5. Hi Sir,

    In Tasty bites financials in Mar 2010 the Miscellaneous Expenses is only 1 Cr. but in Mar 2011 the Miscellaneous Expenses are 11.12 Cr. How do you see this and what it could be. can you please give some clue on this ?

    thanks
    sravani

    ReplyDelete

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