Mehabe score: 5 G Factor: 3 Piotski Score: 5 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 5.
Description
Dynamic Industries is engaged in the business of manufacturing of Dyes, Pigments and Chemicals and main products of the Company are Dyes and Dye stuffs.(Source : 201903 Annual Report Page No: 75)Site:524818Main Symbol:DYNAMIND
Stock trades at 93.8, above its 50dma 74.1. It also trades above its 200dma 56.29. The stock remains bullish on techicals
The 52 week high is at 109.55 and the 52week low is at 35.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.63 times its book value
– has been maintaining a healthy dividend payout of 44.62%
-Promoter holding has increased by 2.68% over last quarter.
Weakness
– The company has delivered a poor sales growth of -0.43% over past five years.
– has a low return on equity of 4.10% for last 3 years.
-Earnings include an other income of Rs.0.50 Cr.
-Debtor days have increased from 89.65 to 117.83 days.
Competition
– The industry trades at a mean P/E of 25.9x. Dynamic Industri trades at the industry’s max P/E of 72.85x. 524818 trades at a P/E of 72.8x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 524818 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 14.1%. The max 1- month return was given by Dynamic Industri: a return of 46.48 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 11.61 cr compared to Rs 3.94 cr for period ended Jun 2020, a rise of 194.7%
Company reported operating profit of Rs 0.34 cr for period ended Jun 2021, operating profit margin at 2.9 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.63 compared to Rs 1.58 for previous quarter ended Mar 2021 and Rs -1.49 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 42.86 cr for period ended TTM vis-vis sales of Rs 35.19 cr for the period ended Mar 2021, a healthy growth of 17.9%. The 3 year sales cagr stood at -13.1%.
Operating margins expanded to 4.22% for period ended TTM vis-vis 3.5% for period ended Mar 2021, expansion of 72.0 bps.
Net Profit reported at Rs 1.03 cr for period ended TTM vis-vis sales of Rs 0.39 cr for the period ended Mar 2021, rising 62.1%.
Company reported a poor Net Profit CAGR of -36.7% 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 stock has given a return of 145% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -37% vis-vis a compounded sales growth of -16% over the last 3 Years. – The compounded profit growth on a TTM basis is -61% vis-vis a compounded profit growth of -49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 48.28% vis-vis 50.96% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.63 times its book value
– has been maintaining a healthy dividend payout of 44.62%
-Promoter holding has increased by 2.68% over last quarter. – The company has delivered a poor sales growth of -0.43% over past five years.
– has a low return on equity of 4.10% for last 3 years.
-Earnings include an other income of Rs.0.50 Cr.
-Debtor days have increased from 89.65 to 117.83 days.
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 74.1 and is trading at 93.8 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
