Mehabe score: 0 G Factor: 5 Piotski Score: 6 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 6. Site:SRPL
Market Cap:
Rs 62.4 cr
Price:
29.2
Trading pe:
23.9x
Book-value:
19.9/share
Div yield:
0.00 %
Earning yield:
6.59%
Face-value:
10.0/share
52week high:
45.25
52week low:
22.50
Technical Analysis
Stock trades at 29.2, below its 50dma 30.1 and below its 200dma 31.17. The stock remains bearish on technicals
The 52 week high is at 45.25 and the 52week low is at 22.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
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 -2.22% over past five years.
– has a low return on equity of 6.75% for last 3 years.
Competition
– The industry trades at a mean P/E of 29.3x. Ruchi Soya Inds. trades at the industry’s max P/E of 107.59x. SRPL trades at a P/E of 23.9x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. SRPL has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 17.6%. The max 1- month return was given by Ruchi Soya Inds.: a return of 60.54 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 80.43 cr compared to Rs 74.66 cr for period ended Mar 2020, a rise of 7.7%
Operating Profits reported at Rs 5.68 cr for period ended Mar 2021 vis-vis 3.38 for period ended Mar 2020 .
Operating Margins expanded 253.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.9 compared to Rs -0.15 for previous quarter ended Dec 2020 and Rs 0.99 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 153.0 cr for period ended Mar 2021 vis-vis sales of Rs 156.0 cr for the period ended Mar 2020, a fall of 2.0%. The 3 year sales cagr stood at -7.8%.
Operating margins shrank to 4.0% for period ended Mar 2021 vis-vis 5.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, falling 200.0%.
Company reported a poor Net Profit CAGR of -20.6% 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 6.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 13% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -22% vis-vis a compounded profit growth of 57% over the last 3 Years.
Ratios
Conclusion
– – 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 -2.22% over past five years.
– has a low return on equity of 6.75% 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 below its 50 DMA 30.1 and is trading at 29.2. Shows a near term lack of buying interest.
