Mehabe score: 5 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.
Description
RDB Rasayans Limited is a manufacturer and exporter of bulk packaging in Eastern India. The Company is primarily engaged and focused on the business of manufacturing of polymer-based woven sack.Site:533608
Market Cap:
Rs 165 cr
Price:
93.1
Trading pe:
8.57x
Book-value:
60.6/share
Div yield:
0.00 %
Earning yield:
17.52%
Face-value:
10.0/share
52week high:
107.00
52week low:
31.00
Technical Analysis
Stock trades at 93.1, above its 50dma 80.59. It also trades above its 200dma 61.15. The stock remains bullish on techicals
The 52 week high is at 107.00 and the 52week low is at 31.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.55% over past five years.
– has a low return on equity of 10.43% for last 3 years.
-Earnings include an other income of Rs.10.04 Cr.
Competition
– The industry trades at a mean P/E of 17.5x. SRF trades at the industry’s max P/E of 34.85x. 533608 trades at a P/E of 8.57x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 7.0. 533608 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 12.8%. The max 1- month return was given by JBF Industries: a return of 47.03 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 27.34 cr compared to Rs 22.06 cr for period ended Mar 2020, a rise of 23.9%
Operating Profits reported at Rs 2.63 cr for period ended Mar 2021 vis-vis 3.98 for period ended Mar 2020 .
Operating Margins contracted -842.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.86 compared to Rs 2.93 for previous quarter ended Dec 2020 and Rs 1.99 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 92.0 cr for period ended Mar 2021 vis-vis sales of Rs 90.0 cr for the period ended Mar 2020, a growth of 2.2%. The 3 year sales cagr stood at 5.7%.
Operating margins expanded to 20.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 900.0 bps.
Net Profit reported at Rs 19.0 cr for period ended Mar 2021 vis-vis sales of Rs 12.0 cr for the period ended Mar 2020, rising 36.8%.
Company recorded a healthy Net Profit CAGR of 39.5% over the last 3 years
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 -3.0 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 147% 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 -2% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 139% vis-vis a compounded profit growth of 26% 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 27.27% vis-vis 27.27% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.55% over past five years.
– has a low return on equity of 10.43% for last 3 years.
-Earnings include an other income of Rs.10.04 Cr.
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 80.59 and is trading at 93.1, thus bullish price action wise.
