Mehabe score: 3 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
Paushak is India’s largest phosgene based specialty chemicals manufacturer serving pharmaceutical, agrochemical and performance industries. Paushak is part of the Alembic group of companies situated in Gujarat, India. Alembic Ltd is the oldest pharmaceutical company in India founded in 1907. ##
Main Points
REVENUE
Domestic: 82% in FY20 vs 84% in FY19
International: 18%.in FY20 vs 16% in FY19##
The company derives revenue from chloroformates, isocyanates, specialty chemicals, carbonates and phosgene gas.#Site:532742Main Symbol:PAUSHAKLTD
Stock trades at 9143.0, above its 50dma 8256.97. It also trades above its 200dma 6405.78. The stock remains bullish on techicals
The 52 week high is at 10320.00 and the 52week low is at 3205.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 25.28% CAGR over last 5 years
Weakness
– Stock is trading at 10.37 times its book value
Competition
– The industry trades at a mean P/E of 33.4x. Paushak trades at the industry’s max P/E of 78.71x. 532742 trades at a P/E of 78.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 532742 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 4.5%. The max 1- month return was given by Paushak: a return of 22.91 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 22.85 cr compared to Rs 32.24 cr for period ended Jun 2020, a fall of 29.1%
Operating Profits reported at Rs 4.77 cr for period ended Jun 2021 vis-vis 10.26 for period ended Jun 2020 .
Operating Margins contracted -1094.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.51 compared to Rs 35.72 for previous quarter ended Mar 2021 and Rs 28.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 132.0 cr for period ended TTM vis-vis sales of Rs 141.0 cr for the period ended Mar 2021, a fall of 6.8%. The 3 year sales cagr stood at -1.9%.
Operating margins shrank to 34.0% for period ended TTM vis-vis 36.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 32.0 cr for period ended TTM vis-vis sales of Rs 37.0 cr for the period ended Mar 2021, falling 15.6%.
Company reported a poor Net Profit CAGR of -6.4% 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 147% on a 1 Year basis vis-vis a return of 70% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.08% vis-vis 0.07% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.95% vis-vis 32.96% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 25.28% CAGR over last 5 years – Stock is trading at 10.37 times its book value
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 8256.97 and is trading at 9143.0, thus bullish price action wise.
