Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 7.
Description
Diana Tea Company is engaged in the business of Cultivation, Manufacturing and sale of Tea.Site:530959
Market Cap:
Rs 43.4 cr
Price:
29.0
Trading pe:
5.26x
Book-value:
47.9/share
Div yield:
0.00 %
Earning yield:
16.35%
Face-value:
5.00/share
52week high:
34.50
52week low:
8.05
Technical Analysis
Stock trades at 29.0, above its 50dma 20.98. It also trades above its 200dma 16.14. The stock remains bullish on techicals
The 52 week high is at 34.50 and the 52week low is at 8.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.60 times its book value
Weakness
– The company has delivered a poor sales growth of 6.89% over past five years.
– has a low return on equity of 0.92% for last 3 years.
Competition
– The industry trades at a mean P/E of 15.4x. Tata Consumer trades at the industry’s max P/E of 75.07x. 530959 trades at a P/E of 5.26x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 530959 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 17.2%. The max 1- month return was given by Mcleod Russel: a return of 56.89 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 6.0 cr compared to Rs 7.0 cr for period ended Mar 2020, a fall of 14.3%
Company reported negative operating profit of Rs -9.0 cr for period ended Mar 2021. For same period last year, operating profit was -7.0
The EPS for Mar 2021 was Rs -6.78 compared to Rs 1.95 for previous quarter ended Dec 2020 and Rs -4.48 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 70.44 cr for period ended Mar 2021 vis-vis sales of Rs 61.11 cr for the period ended Mar 2020, a healthy growth of 13.2%. The 3 year sales cagr stood at 5.0%.
Operating margins expanded to 11.51% for period ended Mar 2021 vis-vis 4.21% for period ended Mar 2020, expansion of 730.0 bps.
Net Profit reported at Rs 4.82 cr for period ended Mar 2021 vis-vis sales of Rs 0.47 cr for the period ended Mar 2020, rising 90.2%.
Company recorded a healthy Net Profit CAGR of 28.7% 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 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 227% on a 1 Year basis vis-vis a return of 20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 1400% vis-vis a compounded profit growth of -41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 38.66% vis-vis 38.66% for Dec 2020
Conclusion
– Stock is trading at 0.60 times its book value – The company has delivered a poor sales growth of 6.89% over past five years.
– has a low return on equity of 0.92% for last 3 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 20.98 and is trading at 29.0, thus bullish price action wise.
