Introduction

Mrs. Bector Foods Share: This is a very popular biscuitf and bread company. The founder of this company is Mrs. Rajni Bector. This company starts in 1978. It has two popular brands the first one is Cremica and the second one is English Oven. Cremica is the brand of biscuits and the English Oven is the brand of bread. In this post, we will discuss the financial and technical analysis of Mrs. Bector Foods.

Mrs. Bector IPO 

Mrs. Bector Foods Share is opening on 15.12.2020 and the IPO closes on 17.12.2020 at the IPO price of Rs.286-Rs.288. It listed in NSE and BSE on 28.12.2020 as a good listing. Mrs. Bector Foods IPO has 50 shares in the lot. But, after listing Mrs. Bector Foods Share at NSE and BSE It made a high of Rs.600 and after that, It continues to fall down. Now we start to talk Why Is The Share Price Of Mrs. Bector Foods Going Down Will It Rise Again? So Lets Starts...

Why Is The Share Price Of Mrs. Bector Foods Going Down Will It Rise Again?

If we want to know about the reason why is the share of Mrs. Bector Foods going down? We have many points to discuss in financial analysis. But if we use the technical analysis we have just limited data but we try to analyze both methods. If I analyze the financial view on Mrs. Bector Foods share we have to analyze Net Sales, Net Profit, PE ratios, and more.

There Is Some Important Reason to Falling Down Mrs. Bector Foods

We give some important reasons for falling down Mrs. Bector Foods. 

Reason #01: Less Market Share In Biscuit Segment

If we compare all the companies in the biscuits segment according to the market share percentage of the whole market.  We get some shocking data that we found is given below...

Company Share(%)
Britania 28%
Parle 27%
ITC 11%
Mrs. Bector
Cremica
1%

You can see in the table that Cremica has a very little share of the whole market is only 1% and this could be a reason that not impress the big investors to invest a big amount in this share. 

Reason #02: Less Market Share In Bread Segment

Its as same as the first reason that less market share of the whole market. Only the difference between the brand. Mrs. Bector Foods Share has another brand that is English Oven is of the bread segment. Lets see in the table of data is given below.

CompanyShare(%)
Britania22%
Modern16%
Bon Bread13%
Mrs. Bector
English Oven
6%

Now, you can compare that in the bread segment the share percentage of English Ovan is only 6% that is also very less than other companies.

Reason #03: Net Sales Growth From 2016-2020

The price of share increases when big investors are invested in the company and the investors must analyze the growth rate of a company that must be increasing at a good rate per year. Now we see some data about net sales of Mrs. Bector Foods.

Year Net Sales(Cr.)
2016 555 Cr. in Rs
2017 587 Cr. in Rs
2018 650 Cr. in Rs
2019 735 Cr. in Rs
2020 707 Cr. in Rs

The growth of sales you can see in the table is very less. If we talk about the growth rate in sales is around 5% that is very less. As you know that for the investment the sales growth rate is very important for the company that can take the attention of investors to invest.

Reason #04: Net Profit Growth From 2016-2020

As you know how much importance of Net Profit. Investors never want to invest in a company that net profit increasing rate is not good. For better investment, the profit increasing rate per year is very important. Now we see the profit of Mrs. Bector Foods from 2016-2020.

YearNet Profit(Cr.)
2016 38.72 Cr. in Rs
2017 25.06 Cr. in Rs
2018 32.02 Cr. in Rs
2019 32.38 Cr. in Rs
2020 28.21 Cr. in Rs

Now, you can see the growth rate of net profit above is not more effective for investors. If we talk about the compounded growth rate that is 3.99%. This growth rate is not good for a better investment so the investment is very less and the price of the share is falling down.

Reason #05: Net Debt Are Increasing

The debt is more important than assets if the company debt has less growth rate of debt and a good rate of growth of sales, net profit, assets, and more. But there is another seen this company has approx 5% compounded yearly sales rate and approx 3.99% compounded yearly net profit rate. But, the debt rate is increasing with 46.6% compounded yearly. This data from ticker.finology.in

Year Debt(Cr.)
2016  30.12 Cr. in Rs
2020  131.17 Cr. in Rs

Now, you can see the data which I provide you that is limited but useful. You can see the growth rate of debt is increasing a high rate of speed but other things are very less rate of increase.

Reason #06: High Price to Earnings Ratio(PE)

The price to earnings ratio is very high. The market capitalization of this company is 2725 Cr. in Rs. and I said before that net earning approx 30Cr. in Rs. and if we calculate the PE ratio that is above 90 that is higher than another competitor as the Britannia, ITC, Parle, etc.

There Are Some Important Questions Asked By People 

1. Should I invest in Mrs. Bector Foods Shares?

Ans. You know the valuation of Mrs. bector foods is very high and PE ratios are also high. Net profit and Net Sales are increasing very low rate of speed compounded yearly. So my opinion about this company is not to buy now. 

2. Why Mrs. Bector Foods falling down?

Ans. The company growth is not much good than a competitor but the PE ratios is very high. This could be a reason for falling down.

3. What is the PE ratio of Mrs. Bector Foods?

Ans. The PE ratios of Mrs. bector foods is above 90 according to ticker.finology.in.

4. What is the Net Profit and Net Sales growth rate of Mrs. Bector Foods?

Ans. The Net Profit growth rate of Mrs. Bector Foods is 3.99% compounded yearly and the Net Sales growth rate of Mrs. Bector Foods is approx 5% compounded yearly.

Conclusion

We discussed many points about Mrs. Bector Foods. Please read carefully before take any decision. What you think about Mrs. Bector Foods Share, please share your point of view through a comment. If this is helpful for us then please share it with your friends. Also Read: Multibagger Penny Stocks For 2021

Tell us about you

Find us at the office

Eastmond- Sukel street no. 62, 79540 Hanga Roa, Easter Island

Give us a ring

Jaquelinee Wrate
+74 201 709 645
Mon - Fri, 9:00-15:00

Reach out