Who knew reliance’s Mukesh Ambani was such a big fan of chocolate? He recently plans to buy 51% of Lotus chocolate for 74 crores. Read full to know whether you should invest in this stock.
Lotus chocolate’s current share price is 122.95 apiece. Today the stock opened and rushed 5% during the trading hours on the BSE exchange. Let’s look at the technical analysis of this stock.
The company looks fine on the daily and Monthly chart time frame, however, on the Monthly time frame it seems overbought already. You should be a little concerned if you are planning to invest for the next few months. In the short time frame, the technical seems fine.
Let’s look at the Fundamentals of the Lotus chocolate share
Balance Sheet
Figures in Rs. CroresCORPORATE ACTIONS
| Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Sep 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share Capital + | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 | 20.23 |
| Reserves | -18.57 | -20.66 | -22.19 | -24.88 | -24.29 | -23.03 | -23.50 | -22.45 | -21.13 | -20.20 | -18.43 | -12.42 | -12.84 |
| Borrowings + | 20.45 | 17.38 | 16.91 | 19.87 | 18.32 | 29.36 | 23.29 | 16.94 | 15.63 | 14.30 | 16.20 | 13.60 | 8.30 |
| Other Liabilities + | 13.50 | 12.10 | 16.34 | 14.89 | 15.65 | 15.06 | 13.15 | 14.93 | 13.75 | 14.11 | 11.69 | 13.44 | 5.65 |
| Total Liabilities | 28.22 | 21.66 | 23.90 | 22.72 | 22.52 | 34.23 | 25.78 | 22.26 | 21.09 | 21.05 | 22.30 | 27.46 | 21.34 |
| Fixed Assets + | 4.36 | 3.92 | 5.74 | 6.09 | 5.79 | 5.79 | 5.52 | 3.42 | 2.77 | 2.12 | 1.49 | 1.60 | 1.75 |
| CWIP | 2.00 | 2.00 | 0.33 | 0.03 | 0.05 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 |
| Investments | 0.20 | 0.18 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other Assets + | 21.66 | 15.56 | 17.65 | 16.60 | 16.68 | 28.44 | 20.26 | 18.83 | 18.31 | 18.92 | 20.80 | 25.86 | 19.59 |
| Total Assets | 28.22 | 21.66 | 23.90 | 22.72 | 22.52 | 34.23 | 25.78 | 22.26 | 21.09 | 21.05 | 22.30 | 27.46 | 21.34 |
While the company has reduced its borrowings, its reserves are Negative. While we look at the profit and loss
Profit & Loss
Figures in Rs. Crores
| Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 38.69 | 55.51 | 46.44 | 56.30 | 60.78 | 65.40 | 66.47 | 56.92 | 65.69 | 69.89 | 47.87 | 86.97 | 85.94 |
| Expenses + | 42.25 | 55.61 | 47.07 | 57.97 | 59.86 | 62.65 | 65.04 | 54.22 | 63.75 | 68.32 | 45.48 | 80.63 | 82.04 |
| Operating Profit | -3.56 | -0.10 | -0.63 | -1.67 | 0.92 | 2.75 | 1.43 | 2.70 | 1.94 | 1.57 | 2.39 | 6.34 | 3.90 |
| OPM % | -9.20% | -0.18% | -1.36% | -2.97% | 1.51% | 4.20% | 2.15% | 4.74% | 2.95% | 2.25% | 4.99% | 7.29% | 4.54% |
| Other Income + | 0.08 | 0.31 | 0.14 | 0.06 | 0.59 | 0.19 | 0.13 | 0.02 | 0.07 | 0.05 | 0.11 | 0.20 | -0.24 |
| Interest | 0.88 | 1.80 | 0.53 | 0.42 | 0.07 | 0.91 | 1.22 | 0.66 | 0.15 | 0.20 | 0.20 | 0.31 | 0.38 |
| Depreciation | 0.51 | 0.50 | 0.51 | 0.66 | 0.73 | 0.77 | 0.80 | 0.80 | 0.65 | 0.65 | 0.62 | 0.22 | 0.18 |
| Profit before tax | -4.87 | -2.09 | -1.53 | -2.69 | 0.71 | 1.26 | -0.46 | 1.26 | 1.21 | 0.77 | 1.68 | 6.01 | 3.10 |
| Tax % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 26.19% | -9.92% | -14.29% | -5.36% | 0.00% | |
| Net Profit | -4.87 | -2.08 | -1.54 | -2.69 | 0.71 | 1.26 | -0.46 | 0.93 | 1.33 | 0.88 | 1.77 | 6.01 | 3.10 |
| EPS in Rs | -3.79 | -1.62 | -1.20 | -2.09 | 0.55 | 0.98 | -0.36 | 0.72 | 1.04 | 0.69 | 1.38 | 4.68 | 2.41 |
| Dividend Payout % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
The company has turned slightly profitable, and most of the shares are with the promoters themselves. Overall it is a decent buy. One can accumulate this share at this rate and average if it goes south.
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