Mehabe score: 5 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & 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 3 and Piotski score of 6.
Description
Archit Organosys is primarily engaged in the business of manufacturing and selling of various chemical products.Site:524640
Market Cap:
Rs 90.2 cr
Price:
53.0
Trading pe:
31.1x
Book-value:
20.0/share
Div yield:
0.00 %
Earning yield:
4.47%
Face-value:
10.0/share
52week high:
62.35
52week low:
8.94
Technical Analysis
Stock trades at 53.0, above its 50dma 36.3. It also trades above its 200dma 24.92. The stock remains bullish on techicals
The 52 week high is at 62.35 and the 52week low is at 8.94
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 2.64 times its book value
-Promoter holding has decreased over last quarter: -6.47%
– has a low return on equity of -5.10% for last 3 years.
Competition
– The industry trades at a mean P/E of 28.2x. Pidilite Inds. trades at the industry’s max P/E of 95.02x. 524640 trades at a P/E of 31.1x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. 524640 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 12.2%. The max 1- month return was given by Archit Organosys: a return of 63.08 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 30.51 cr compared to Rs 16.65 cr for period ended Mar 2020, a rise of 83.2%
Operating Profits reported at Rs 2.86 cr for period ended Mar 2021 vis-vis 0.35 for period ended Mar 2020 .
Operating Margins expanded 727.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.06 compared to Rs 1.02 for previous quarter ended Dec 2020 and Rs -0.34 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 94.51 cr for period ended Mar 2021 vis-vis sales of Rs 76.69 cr for the period ended Mar 2020, a healthy growth of 18.9%. The 3 year sales cagr stood at 5.0%.
Operating margins expanded to 11.7% for period ended Mar 2021 vis-vis 4.62% for period ended Mar 2020, expansion of 708.0 bps.
Net Profit reported at Rs 5.01 cr for period ended Mar 2021 vis-vis sales of Rs -0.8 cr for the period ended Mar 2020, rising 116.0%.
Company recorded a healthy Net Profit CAGR of 114.2% 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 stock has given a return of 410% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 4733% 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 44.89% vis-vis 44.89% for Dec 2020
Conclusion
– – Stock is trading at 2.64 times its book value
-Promoter holding has decreased over last quarter: -6.47%
– has a low return on equity of -5.10% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 36.3 and is trading at 53.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
