InvestorQ : Should I hold shares of tastybite eatables.. I purchased 13 shares at value of 9400.
amol sagulale made post

Should I hold shares of tastybite eatables.. I purchased 13 shares at value of 9400.

Answer
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rhea Babu answered.
11 months ago


You must be aware that Tasty Bites has been one of the fastest growing stocks in the Indian market. For example, the stock was quoting at Rs.249 back in 2014 but since then it has moved up to as high as Rs.10,000 in five years making it a 40-bagger. However, the stock currently quotes at a P/E ratio of nearly 80X and that largely reduces the margin of safety on the stock. You need to keep that in mind when you hold shares as you have bought at a very high price.

Having said that, the company has built some strengths. The company has ROE of 26% and ROCE of 32%. Sales growth has been consistent at 20% in the last 4 years. And all this is available at a market cap of Rs.2600 crore. That surely leaves a scope for the stock to appreciate as it is in the food business which is normally a non cyclical business. Ideally, you must look to keep adding on to the stock on dips to make your average cost lower.