Mehabe score: 2 G Factor: 2 Piotski Score: 6 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 6.
Description
Balkrishna Paper Mills is engaged in the business of Manufacturing of Paper and Paper Board.Site:BALKRISHNA
Market Cap:
Rs 23.2 cr
Price:
21.6
Trading pe:
x
Book-value:
-87.3/share
Div yield:
0.00 %
Earning yield:
-9.97%
Face-value:
10.0/share
52week high:
29.25
52week low:
11.05
Technical Analysis
Stock trades at 21.6, below its 50dma 21.95. However it is trading above its 200dma 19.51. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 21.95.
The 52 week high is at 29.25 and the 52week low is at 11.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.17% over past five years.
-Contingent liabilities of Rs.12.19 Cr.
Competition
– The industry trades at a mean P/E of 17.5x. Century Textiles trades at the industry’s max P/E of 64.79x. BALKRISHNA trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. BALKRISHNA has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 11.5%. The max 1- month return was given by Emami Paper: a return of 27.99 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 126.0 cr for period ended Mar 2021 vis-vis sales of Rs 196.0 cr for the period ended Mar 2020, a fall of 55.6%. The 3 year sales cagr stood at -15.4%.
Net Profit reported at Rs -26.0 cr for period ended Mar 2021 vis-vis sales of Rs -35.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 24.0 cr for period ended Mar 2021 vis-vis Rs -14.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 67% on a 1 Year basis vis-vis a return of -32% over the last 3 Years. – The compounded sales growth on a TTM bassis is -36% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is 25% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.29% vis-vis 41.29% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.17% over past five years.
-Contingent liabilities of Rs.12.19 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 21.95 and is trading at 21.6. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
