Mehabe score: 7 G Factor: 2 Piotski Score: 9 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 2 and Piotski score of 9.
Description
Fertilizers & Chemicals Travancore is engaged in Business of Complex Fertilisers and Ammonium sulphate.Site:FACT
Market Cap:
Rs 9,321 cr
Price:
144.0
Trading pe:
34.7x
Book-value:
-6.59/share
Div yield:
0.00 %
Earning yield:
5.59%
Face-value:
10.0/share
52week high:
151.20
52week low:
39.15
Technical Analysis
Stock trades at 144.0, above its 50dma 120.37. It also trades above its 200dma 89.31. The stock remains bullish on techicals
The 52 week high is at 151.20 and the 52week low is at 39.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Debtor days have improved from 65.38 to 51.41 days.
Weakness
– The company has delivered a poor sales growth of 6.94% over past five years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 11.7x. F A C T trades at the industry’s max P/E of 34.68x. FACT trades at a P/E of 34.7x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. FACT has a G-Factor of 2 and Piotski scoreof 9.
– Average 1 month return for industry is 4.0%. The max 1- month return was given by F A C T: a return of 14.69 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 839.0 cr compared to Rs 779.0 cr for period ended Dec 2019, a rise of 7.7%
Operating Profits reported at Rs 185.0 cr for period ended Dec 2020 vis-vis 96.0 for period ended Dec 2019 .
Operating Margins expanded 972.7 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 2.11 compared to Rs 1.28 for previous quarter ended Sep 2020 and Rs 15.19 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3146.0 cr for period ended TTM vis-vis sales of Rs 2770.0 cr for the period ended Mar 2020, a healthy growth of 12.0%. The 3 year sales cagr stood at 17.7%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 10.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 269.0 cr for period ended TTM vis-vis sales of Rs 976.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 256.0 cr for period ended Mar 2020 vis-vis Rs -410.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 221% on a 1 Year basis vis-vis a return of 45% over the last 3 Years. – The compounded sales growth on a TTM bassis is 24% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 338% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
-Debtor days have improved from 65.38 to 51.41 days. – The company has delivered a poor sales growth of 6.94% over past five years.
-‘s cost of borrowing seems high
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 120.37 and is trading at 144.0 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
