Mehabe score: 6 G Factor: 4 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 4 and Piotski score of 6.
Description
S H Kelkar & Company is engaged in the manufacture, supply and exports of fragrances and aroma ingredients.Site:SHKMain Symbol:SHK
Stock trades at 169.0, above its 50dma 161.18. It also trades above its 200dma 132.34. The stock remains bullish on techicals
The 52 week high is at 189.80 and the 52week low is at 67.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 18.24%
Weakness
– Stock is trading at 2.50 times its book value
-The company has delivered a poor sales growth of 7.41% over past five years.
– has a low return on equity of 11.19% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 30.3x. Pidilite Inds. trades at the industry’s max P/E of 101.03x. SHK trades at a P/E of 16.5x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. SHK has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by Navin Fluo.Intl.: a return of 14.7 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 397.0 cr compared to Rs 271.0 cr for period ended Mar 2020, a rise of 46.5%
Operating Profits reported at Rs 67.0 cr for period ended Mar 2021 vis-vis 32.0 for period ended Mar 2020 .
Operating Margins expanded 506.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.84 compared to Rs 2.5 for previous quarter ended Dec 2020 and Rs 0.9 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1322.0 cr for period ended Mar 2021 vis-vis sales of Rs 1114.0 cr for the period ended Mar 2020, a healthy growth of 15.7%. The 3 year sales cagr stood at 9.0%.
Operating margins expanded to 18.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 145.0 cr for period ended Mar 2021 vis-vis sales of Rs 36.0 cr for the period ended Mar 2020, rising 75.2%.
Company recorded a healthy Net Profit CAGR of 15.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 16.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 137% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 154% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 7.09% vis-vis 8.43% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.38% vis-vis 25.35% for Dec 2020
Conclusion
– has been maintaining a healthy dividend payout of 18.24% – Stock is trading at 2.50 times its book value
-The company has delivered a poor sales growth of 7.41% over past five years.
– has a low return on equity of 11.19% for last 3 years.
– might be capitalizing the interest cost
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 161.18 and is trading at 169.0, thus bullish price action wise.
