Mehabe score: 5 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
Panasonic Energy India Company is engaged in the Business of Dry Cell Batteries.Site:504093
Market Cap:
Rs 204 cr
Price:
272.0
Trading pe:
26.4x
Book-value:
134/share
Div yield:
1.47 %
Earning yield:
8.85%
Face-value:
10.0/share
52week high:
279.90
52week low:
127.10
Technical Analysis
Stock trades at 272.0, above its 50dma 233.63. It also trades above its 200dma 209.44. The stock remains bullish on techicals
The 52 week high is at 279.90 and the 52week low is at 127.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 71.30%
Weakness
– The company has delivered a poor sales growth of -3.12% over past five years.
– has a low return on equity of 6.00% for last 3 years.
-Earnings include an other income of Rs.4.02 Cr.
Competition
– The industry trades at a mean P/E of 45.3x. HBL Power System trades at the industry’s max P/E of 91.03x. 504093 trades at a P/E of 26.4x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. 504093 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 20.3%. The max 1- month return was given by Indo National: a return of 26.51 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 62.2 cr compared to Rs 43.39 cr for period ended Mar 2020, a rise of 43.4%
Company reported operating profit of Rs 1.77 cr for period ended Mar 2021, operating profit margin at 2.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 2.27 compared to Rs 4.96 for previous quarter ended Dec 2020 and Rs -1.19 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 232.0 cr for period ended Mar 2021 vis-vis sales of Rs 204.0 cr for the period ended Mar 2020, a healthy growth of 12.1%. The 3 year sales cagr stood at 4.0%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, rising 70.0%.
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 -2.0 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 114% on a 1 Year basis vis-vis a return of -4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 90% vis-vis a compounded profit growth of -19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.94% vis-vis 41.94% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 71.30% – The company has delivered a poor sales growth of -3.12% over past five years.
– has a low return on equity of 6.00% for last 3 years.
-Earnings include an other income of Rs.4.02 Cr.
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 233.63 and is trading at 272.0 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
