Mehabe score: 5 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
PDS Multinational is one of the largest consumer goods design, product development, sourcing, virtual manufacturing and distribution businesses. It works with leading global retailers and brands and specialize in delivering world class products at competitive prices.Site:PDSMFLMain Symbol:PDSMFL
Stock trades at 1033.0, above its 50dma 896.65. It also trades above its 200dma 655.24. The stock remains bullish on techicals
The 52 week high is at 1050.00 and the 52week low is at 252.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 24.60% CAGR over last 5 years
Weakness
– Stock is trading at 4.16 times its book value
-The company has delivered a poor sales growth of 7.75% over past five years.
-Tax rate seems low
– has a low return on equity of 11.44% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 23.5x. Garware Tech. trades at the industry’s max P/E of 44.14x. PDSMFL trades at a P/E of 31.9x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. PDSMFL has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Garware Tech.: a return of 14.44 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1765.0 cr compared to Rs 2004.0 cr for period ended Mar 2020, a fall of 11.9%
Operating Profits reported at Rs 96.0 cr for period ended Mar 2021 vis-vis 107.0 for period ended Mar 2020 .
Operating Margins expanded 10.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 23.16 compared to Rs 12.7 for previous quarter ended Dec 2020 and Rs 6.49 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6213.0 cr for period ended Mar 2021 vis-vis sales of Rs 6648.0 cr for the period ended Mar 2020, a fall of 7.0%. The 3 year sales cagr stood at 8.1%.
Operating margins expanded to 4.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 84.0 cr for period ended Mar 2021 vis-vis sales of Rs 46.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 379.0 cr for period ended Mar 2021 vis-vis Rs 281.0 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 267% on a 1 Year basis vis-vis a return of 58% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 59% vis-vis a compounded profit growth of 134% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.58% vis-vis 3.51% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.21% vis-vis 29.25% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 24.60% CAGR over last 5 years – Stock is trading at 4.16 times its book value
-The company has delivered a poor sales growth of 7.75% over past five years.
-Tax rate seems low
– has a low return on equity of 11.44% for last 3 years.
– might be capitalizing the interest cost
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 896.65 and is trading at 1033.0 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
