This report is an updated version of the report published on 14^th March 2022 at 11:39 AM GMT.

Cake Box Holdings PLC

Cake Box Holdings PLC (LON: CBOX) is an FTSE AIM All-Share-listed UK-based franchise retailer and manufacturer of cakes. Moreover, the retail stores were operated under the brand Egg free Cake Box.

Investment Rationale – SELL at GBX 226.50

• Profit Booking Opportunity: The stock price witnessed a decent rally and managed to breach the target levels provided in the last coverage. Thus, it would be a decent opportunity to book profit for the investors.
• Stepping Down of CFO: On 14 March 2022, the Company confirmed that Pardip Dass, co-founder, and CFO had stepped down to pursue other interests.
• Federal Reserve Meeting: The Federal Reserve meeting scheduled for 16 March 2022 may result in first interest rate hike since 2018. Thus, it may create a pressure on global Equities.
• Technical Indicator: From a technical standpoint, the 14-days RSI (~66.89) is in the overbought territory.

Share Price Chart

 (Source: REFINITIV; Analysis done by Kalkine Group)

Valuation Methodology: Price/Earnings Approach (FY22) (Illustrative)

Conclusion                                                                                                   

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Based on the unfavourable valuation provided above, bearish technical indicators, and target price achievement as per valuation provided in our previous Speculative Buy report published for CBOX dated 28 February 2022, we have given a "SELL" recommendation on Cake Box Holdings PLC at the current market price of GBX 226.50 (as of 14 March 2022 at 10.35 AM GMT). 

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: Dividend Yield may vary as per the stock price movement.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’ 

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