Mehabe score: 7 G Factor: 6 Piotski Score: 8 The stock has a rating . 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 6 and Piotski score of 8.
Description
Gulshan Polyols Ltd is one of the largest manufacturers of Precipitated Calcium Carbonate and Sorbitol in India. It is a market leader with a substantial market share in the respective segments #
Main Points
Multiple manufacturing facilities #
GPL is engaged in the manufacturing of Calcium Carbonate (CC) and Sorbitol & Liquid Glucose (LG) and starch. The manufacturing facilities for CC are located at Muzaffarnagar (UP), Dhaula Kuan (HP), Abu Road (Rajasthan) and Patiala (Punjab) while that of Sorbitol & LG are located at Bharuch (Gujarat). Further, from Dec 2017, GPL had commenced the commercial production of ENA and Rectified Spirit and as on date the total installed capacity of the same stands at 60,000 liters per day.
As on March 31, 2020, the total installed capacity of Sorbitol & LG stood at 87,000 MTPA, CC was 1,06,000 MT and starch was at 60,000 MTPA.Site:GULPOLYMain Symbol:GULPOLY
Stock trades at 233.0, above its 50dma 188.21. It also trades above its 200dma 127.52. The stock remains bullish on techicals
The 52 week high is at 243.40 and the 52week low is at 35.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 2.99 times its book value
– has a low return on equity of 11.05% for last 3 years.
Competition
– The industry trades at a mean P/E of 30.8x. Pidilite Inds. trades at the industry’s max P/E of 104.02x. GULPOLY trades at a P/E of 17.5x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. GULPOLY has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 8.7%. The max 1- month return was given by Gulshan Polyols: a return of 21.5 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 239.0 cr compared to Rs 121.0 cr for period ended Jun 2020, a rise of 97.5%
Operating Profits reported at Rs 43.0 cr for period ended Jun 2021 vis-vis 17.0 for period ended Jun 2020 .
Operating Margins expanded 394.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.58 compared to Rs 4.59 for previous quarter ended Mar 2021 and Rs 1.1 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 884.0 cr for period ended TTM vis-vis sales of Rs 766.0 cr for the period ended Mar 2021, a healthy growth of 13.3%. The 3 year sales cagr stood at 9.5%.
Operating margins expanded to 18.0% for period ended TTM vis-vis 17.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 83.0 cr for period ended TTM vis-vis sales of Rs 62.0 cr for the period ended Mar 2021, rising 25.3%.
Company recorded a healthy Net Profit CAGR of 58.1% 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 106.0 cr for period ended Mar 2021 vis-vis Rs 44.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 495% on a 1 Year basis vis-vis a return of 65% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 204% vis-vis a compounded profit growth of 52% 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 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 31.63% vis-vis 31.18% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Stock is trading at 2.99 times its book value
– has a low return on equity of 11.05% for last 3 years.
