Tasty Bites Eatables: A good small cap stock to munch

Tasty Bites Eatables is one fundamentally solid stock in the small cap space that is buzzing on bourses. For the year ended March 31, 2016, revenues for the Company have grown 18% over last year to Rs. 208.5 crores. EBIDTA has grown twice as fast at Rs. 34.5 crores resulting in PAT of Rs. 16.9 crores.

The Company is well-positioned to accelerate its 15-year growth trajectory for both its Consumer and Food Service Business, internationally and in India.

It is the strategic congruence of company practices and industry trends that created a tailwind for the company’s consumer business. All channels (grocery, club and private label) saw double-digit growth for the year. Despite the vicissitudes of the US economy, the Tasty Bite consumer business grew 21% over last year at Rs. 130 crores, which is 62% of the Company’s revenues.

Indian entrées continued their dominant position with over 50% market share in the US & Canada. Australia & New Zealand maintained revenues. Asian entrées were launched in the US this year even as they discontinued Asian noodles. Organic rices & grains have now become the fastest growing brand in its category. Both in conventional grocery & in the natural trade, the brand has grown in excess of 30%. Spice & Simmer, a new range of ready-to-cook products was test marketed in the US during the year and is now being rolled out nationally.

The stock has delivered a whopping 243 per cent returns over a one year time frame. Over one month the stock has gained 39 per cent.