Mehabe score: 4 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. 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 4 and Piotski score of 7.
Description
Roto Pumps is engaged in manufacturing of screw pumps and parts of pumps.The Companys products include progressive cavity pumps (PCP), twin screw pumps (TSP) and retrofit parts. The Companys products serve a cross section of industries including infrastructure, oil and gas, power, mining, paper and pulp which form critical part of the economy.Site:517500
Market Cap:
Rs 350 cr
Price:
226.0
Trading pe:
19.1x
Book-value:
66.8/share
Div yield:
0.62 %
Earning yield:
6.17%
Face-value:
2.00/share
52week high:
235.00
52week low:
83.10
Technical Analysis
Stock trades at 226.0, above its 50dma 188.49. It also trades above its 200dma 147.18. The stock remains bullish on techicals
The 52 week high is at 235.00 and the 52week low is at 83.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 95.61% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 5.55% over past five years.
Competition
– The industry trades at a mean P/E of 20.4x. Adarsh Plant trades at the industry’s max P/E of 150.0x. 517500 trades at a P/E of 19.1x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. 517500 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 32.4%. The max 1- month return was given by Kirl. Brothers: a return of 93.17 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 36.03 cr compared to Rs 27.22 cr for period ended Mar 2020, a rise of 32.4%
Operating Profits reported at Rs 4.45 cr for period ended Mar 2021 vis-vis 0.15 for period ended Mar 2020 .
Operating Margins expanded 1180.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.34 compared to Rs 5.02 for previous quarter ended Dec 2020 and Rs -0.34 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 127.0 cr for period ended Mar 2021 vis-vis sales of Rs 132.0 cr for the period ended Mar 2020, a fall of 3.9%. The 3 year sales cagr stood at 3.7%.
Operating margins expanded to 21.0% for period ended Mar 2021 vis-vis 17.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 18.0 cr for period ended Mar 2021 vis-vis sales of Rs 12.0 cr for the period ended Mar 2020, rising 33.3%.
Company recorded a healthy Net Profit CAGR of 26.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 134% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 51% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.55% vis-vis 0.55% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.52% vis-vis 29.52% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 95.61% CAGR over last 5 years – The company has delivered a poor sales growth of 5.55% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 188.49 and is trading at 226.0, thus bullish price action wise.
