A penny Stock,will it be a multibagger stock for 2022??

 

A Small cap company has become Delicious😋 ,will it be a multibagger?..Read here

Table Of Content:

• About  the company

• Business &Products Category 

•  Financials

• News &Update

• Analysis and views

About the company

Shri Bajrang Alliance Ltd is a company of Goel group of Raipur,Chattisgarh.The company is a manufacturer of structural steels like angle,channel,joint. Recently ,in 2020,the company has forayed into food business by launching a pure vegetarian Frozen food brand Goeld. It also intends to venture into supercritical oils,and nutraceuticals.

BOARD OF DIRECTORS Shri Narendra Goel - Chairman & Director Shri Anand Goel - Managing Director Shri Archit Goel - WTD & CFO Shri Rakesh Kumar Mehra - Independent Director Shri Anshul Dave - Independent Director Ms. Niyati Dipak Thaker - Independent Women Director.

Business & Product category

The company was into manufacturing of structural steel like angle channel,joint. Recently the company forayed into vegetarian  food business. So the main categories are:

i)STEEL -   Manufacturing of steel angle, channels,joints,beam rods.

ii) FOODS- In the year 2020,the company forayed into 100% veg packaged frozen food business

with brand name GOELD.

Company has established modern and world class manufacturing unit with installed .

• capacity of 6000 tons per annum/ frozen foods
• 300kl/yr Natural oils

cold storage with 500 toncapacity below 18 deg celsius.

iii)Essential Oils : The company also plans to enter essential oils and Oleoresins.

iv)Health  Supplements : The company is also into health supplement products like organic and in organic spirulina.

Financials:

CMP=Rs181

MCap=Rs163(cr)

Shareholding Pattern:

The shareholding pattern as on 31.12.2021 was:

PROMOTERS = 63.97%PUBLIC         =36.03%

Sales Qtrly(Dec'21)=Rs.48.27(cr)        Sales TTM=Rs.199(cr)

Net Profit Qtrly(Dec'21)=Rs.2.52(cr)   Net Profit TTM=Rs.64(cr)

P/E=3.1,

News &Update:

Recently the company had announced its quarterly result for quarter ended Dec'21.The net profit was Rs.2.52 cr, compared to 14.7cr in qtr ended Dec'20; a 82.8% decline in net profit.

Analysis and views : 

Pros: 

• Entered into new Business

The company has entered into new vertical of frozen food business and has been working aggressively to expand it.

• Has Bakward integration

The company procures vegetables from its own farms.

• Own modern manufacturing plant

The  Raipur plant is well equipped and ultra modern,and is British Retail Consortium Accredited.

• Started Export

The company has been planning for export market.

In jan 2021 the company has said that they had started exporting to New zealand and has sent their first consignment. 

• Increasing Net Profit

The company's net profit is increasing year on year for last 3 years.

Year ended Mrach 2020 Rs.14 cr    

Year ended Mrach 2021 Rs.31cr                                

                          TTM  Rs.64cr

• Increasing Promoter's stake 

Promoters stake has increased from 60.12 %to 63.98% inthe last 4 quarters.

Cons: 

• Not Paying Dividend

        company has been earning for last 4years but is  not paying dividend .

• Unceartainity

         In the recent quarter ended Dec'2021 the company 's profit has declined by 82.8%.

Diversifying into new business is good but one must see how profitably it can be managed. Although this could be the inflection point to buy the stock but fluctuation in  profit is a concern.

Happy Investing.😊

Disclaimer:

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