Mehabe score: 4 G Factor: 6 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 6 and Piotski score of 7.
Description
Bright Brothers is engaged in the business of manufacturing injection moulded plastics products for supplies to Original Equipment Manufacturers for Consumer Durable Industry and market its own products under Brite brand for material handling crates.(Source : 201903 Annual Report Page No: 70)Site:526731
Market Cap:
Rs 65.8 cr
Price:
116.0
Trading pe:
49.5x
Book-value:
77.2/share
Div yield:
1.73 %
Earning yield:
11.09%
Face-value:
10.0/share
52week high:
133.00
52week low:
47.05
Technical Analysis
Stock trades at 116.0, above its 50dma 96.08. It also trades above its 200dma 81.28. The stock remains bullish on techicals
The 52 week high is at 133.00 and the 52week low is at 47.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 6.05% over past five years.
– has a low return on equity of 4.45% for last 3 years.
-Debtor days have increased from 45.39 to 77.03 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 25.0x. Responsive Ind trades at the industry’s max P/E of 101.85x. 526731 trades at a P/E of 49.5x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. 526731 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 14.3%. The max 1- month return was given by Jai Corp: a return of 61.14 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 77.71 cr compared to Rs 45.78 cr for period ended Mar 2020, a rise of 69.7%
Operating Profits reported at Rs 7.42 cr for period ended Mar 2021 vis-vis 2.96 for period ended Mar 2020 .
Operating Margins expanded 308.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.99 compared to Rs 3.71 for previous quarter ended Dec 2020 and Rs -1.71 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 202.0 cr for period ended Mar 2021 vis-vis sales of Rs 218.0 cr for the period ended Mar 2020, a fall of 7.9%. The 3 year sales cagr stood at -1.9%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 7.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, rising 50.0%.
Company recorded a healthy Net Profit CAGR of 81.7% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 99% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -25% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -76% vis-vis a compounded profit growth of 68% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 46.42% vis-vis 46.46% for Dec 2020
Conclusion
– – The company has delivered a poor sales growth of 6.05% over past five years.
– has a low return on equity of 4.45% for last 3 years.
-Debtor days have increased from 45.39 to 77.03 days.
-‘s cost of borrowing seems high
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 96.08 and is trading at 116.0, thus bullish price action wise.
