Mehabe score: 2 G Factor: 6 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 6 and Piotski score of 4.
Description
Cochin Minerals & Rutile is engaged in the manufacture of Synthetic Rutile, Ferric Chloride, Ferrous Chloride, Iron Hydroxide (Cemox), Recovered Ti02, Recovered Upgraded ilmenite and Rutoweld.(Source : 201903 Annual Report Page No: 81)Site:513353Main Symbol:COCHINM
Stock trades at 155.0, above its 50dma 148.01. It also trades above its 200dma 134.11. The stock remains bullish on techicals
The 52 week high is at 190.00 and the 52week low is at 97.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 20.85% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 8.62% over past five years.
– has a low return on equity of 8.62% for last 3 years.
-Debtor days have increased from 24.28 to 39.51 days.
Competition
– The industry trades at a mean P/E of 28.8x. Pidilite Inds. trades at the industry’s max P/E of 101.72x. 513353 trades at a P/E of 15.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 513353 has a G-Factor of 6 and Piotski scoreof 4.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by Alkyl Amines: a return of 12.69 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 37.96 cr compared to Rs 63.23 cr for period ended Jun 2020, a fall of 40.0%
Company reported negative operating profit of Rs -0.53 cr for period ended Jun 2021. For same period last year, operating profit was 5.96
The EPS for Jun 2021 was Rs -1.17 compared to Rs 1.61 for previous quarter ended Mar 2021 and Rs 3.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 214.0 cr for period ended TTM vis-vis sales of Rs 239.0 cr for the period ended Mar 2021, a fall of 11.7%. The 3 year sales cagr stood at -1.4%.
Operating margins shrank to 6.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 5.0 cr for period ended TTM vis-vis sales of Rs 8.0 cr for the period ended Mar 2021, falling 60.0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 42% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 35% vis-vis a compounded profit growth of 82% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 47.07% vis-vis 47.07% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 20.85% CAGR over last 5 years – The company has delivered a poor sales growth of 8.62% over past five years.
– has a low return on equity of 8.62% for last 3 years.
-Debtor days have increased from 24.28 to 39.51 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 148.01 and is trading at 155.0 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
