Mehabe score: 1 G Factor: 3 Piotski Score: 2 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 3 and Piotski score of 2.
Description
Kemp & Co. Limited is engaged in retail of plastic packaging goods.Site:506530
Market Cap:
Rs 44.2 cr
Price:
409.0
Trading pe:
x
Book-value:
1,321/share
Div yield:
0.12 %
Earning yield:
-1.55%
Face-value:
10.0/share
52week high:
450.90
52week low:
333.30
Technical Analysis
Stock trades at 409.0, below its 50dma 422.55 and below its 200dma 506.71. The stock remains bearish on technicals
The 52 week high is at 450.90 and the 52week low is at 333.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.31 times its book value
-Market value of investments Rs.79.65 Cr. is more than the Market Cap Rs.44.17 Cr.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -13.53% over past five years.
– has a low return on equity of 0.22% for last 3 years.
– has high debtors of 206.78 days.
Competition
– The industry trades at a mean P/E of 40.8x. 3M India trades at the industry’s max P/E of 198.57x. 506530 trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. 506530 has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 18.9%. The max 1- month return was given by Redington India: a return of 49.03 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.81 cr compared to Rs 0.71 cr for period ended Mar 2020, a rise of 14.1%
Company reported negative operating profit of Rs -0.11 cr for period ended Mar 2021. For same period last year, operating profit was -0.18
The EPS for Mar 2021 was Rs -1.67 compared to Rs -1.67 for previous quarter ended Dec 2020 and Rs 8.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.33 cr for period ended Mar 2021 vis-vis sales of Rs 3.07 cr for the period ended Mar 2020, a fall of 31.8%. The 3 year sales cagr stood at -9.2%.
Operating margins shrank to -21.03% for period ended Mar 2021 vis-vis -19.22% for period ended Mar 2020, contraction of 181.0 bps.
Net Profit reported at Rs -0.62 cr for period ended Mar 2021 vis-vis sales of Rs 1.05 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.66 cr for period ended Mar 2021 vis-vis Rs -1.28 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 13% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is -159% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.61% vis-vis 29.61% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.31 times its book value
-Market value of investments Rs.79.65 Cr. is more than the Market Cap Rs.44.17 Cr. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -13.53% over past five years.
– has a low return on equity of 0.22% for last 3 years.
– has high debtors of 206.78 days.
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 422.55 and is trading at 409.0. 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
