Mehabe score: 4 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
Astron Paper & Board Mill is engaged in the manufacturing of Kraft Paper from waste paper.Site:ASTRONMain Symbol:ASTRON
Stock trades at 69.8, above its 50dma 54.08. It also trades above its 200dma 47.83. The stock remains bullish on techicals
The 52 week high is at 74.50 and the 52week low is at 35.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 10.23% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 24.6x. Century Textiles trades at the industry’s max P/E of 33.38x. ASTRON trades at a P/E of 33.4x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 6.0. ASTRON has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 18.6%. The max 1- month return was given by JK Paper: a return of 32.83 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 112.48 cr compared to Rs 67.27 cr for period ended Jun 2020, a rise of 67.2%
Operating Profits reported at Rs 5.47 cr for period ended Jun 2021 vis-vis 7.42 for period ended Jun 2020 .
Operating Margins contracted -616.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.43 compared to Rs 1.43 for previous quarter ended Mar 2021 and Rs 0.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 480.0 cr for period ended TTM vis-vis sales of Rs 435.0 cr for the period ended Mar 2021, a growth of 9.4%. The 3 year sales cagr stood at 8.8%.
Operating margins shrank to 5.0% for period ended TTM vis-vis 6.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 9.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, falling 11.1%.
Company reported a poor Net Profit CAGR of -27.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 33.0 cr for period ended Mar 2021 vis-vis Rs 19.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 81% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is -28% vis-vis a compounded profit growth of -22% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.26% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 54.07% vis-vis 53.81% for Mar 2021
Conclusion
– has reduced debt. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 10.23% for last 3 years.
-‘s cost of borrowing seems high
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 54.08 and is trading at 69.8, thus bullish price action wise.
