Mehabe score: 4 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
Pioneer Distilleries Ltd is engaged in the business of manufacturing and selling of Portable/Beverage alcohol, spirits and related products.Site:PIONDISTMain Symbol:PIONDIST
Stock trades at 133.0, above its 50dma 126.17. It also trades above its 200dma 116.84. The stock remains bullish on techicals
The 52 week high is at 140.40 and the 52week low is at 89.10
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.52% over past five years.
Competition
– The industry trades at a mean P/E of 36.1x. United Breweries trades at the industry’s max P/E of 319.35x. PIONDIST trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. PIONDIST has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Globus Spirits: a return of 16.65 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 37.0 cr compared to Rs 33.0 cr for period ended Jun 2020, a rise of 12.1%
Company reported negative operating profit of Rs -5.0 cr for period ended Jun 2021. For same period last year, operating profit was -4.0
The EPS for Jun 2021 was Rs -15.42 compared to Rs -15.96 for previous quarter ended Mar 2021 and Rs -15.04 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 171.0 cr for period ended TTM vis-vis sales of Rs 167.0 cr for the period ended Mar 2021, a growth of 2.3%. The 3 year sales cagr stood at 7.4%.
Operating margins expanded to -14.0% for period ended TTM vis-vis -15.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs -87.0 cr for period ended TTM vis-vis sales of Rs -87.0 cr for the period ended Mar 2021,
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 15% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.63% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 23.62% vis-vis 24.25% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.52% over past five years.
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 126.17 and is trading at 133.0 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
