Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
NHC Foods is engaged in the business of Whole & Ground Spices, Lentils, Pulses, Grains, Oil Seeds and various other Agri – products and Assorted Food Products.Site:517554
Market Cap:
Rs 12.4 cr
Price:
10.4
Trading pe:
8.37x
Book-value:
18.2/share
Div yield:
0.00 %
Earning yield:
10.03%
Face-value:
10.0/share
52week high:
11.75
52week low:
4.04
Technical Analysis
Stock trades at 10.4, above its 50dma 7.45. It also trades above its 200dma 6.85. The stock remains bullish on techicals
The 52 week high is at 11.75 and the 52week low is at 4.04
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.57 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.23% over past five years.
– has a low return on equity of 5.18% for last 3 years.
-Contingent liabilities of Rs.5.22 Cr.
Competition
– The industry trades at a mean P/E of 38.4x. Hindustan Foods trades at the industry’s max P/E of 118.99x. 517554 trades at a P/E of 8.37x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. 517554 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 9.5%. The max 1- month return was given by NHC Foods: a return of 51.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 38.61 cr compared to Rs 43.84 cr for period ended Mar 2020, a fall of 11.9%
Operating Profits reported at Rs 0.98 cr for period ended Mar 2021 vis-vis 1.03 for period ended Mar 2020 .
Operating Margins expanded 18.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.27 compared to Rs 0.25 for previous quarter ended Dec 2020 and Rs 0.41 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 152.0 cr for period ended Mar 2021 vis-vis sales of Rs 132.0 cr for the period ended Mar 2020, a healthy growth of 13.2%. The 3 year sales cagr stood at 20.4%.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020,
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -6.0 cr for period ended Mar 2020
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 7.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 142% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 58.12% vis-vis 58.37% for Dec 2020
Conclusion
– Stock is trading at 0.57 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.23% over past five years.
– has a low return on equity of 5.18% for last 3 years.
-Contingent liabilities of Rs.5.22 Cr.
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 7.45 and is trading at 10.4, thus bullish price action wise.
