Mehabe score: 6 G Factor: 4 Piotski Score: 7 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 7.
Description
TCPL manufactures folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with the capability to produce printed cork-tipping paper, laminates, sleeves, and wrap-around labels.
Main Points
Manufacturing Unit
The company has 7 manufacturing units as of FY20 #. The company operates multiple manufacturing units situated at Haridwar, Silvassa, Goa, Guwahati. #Site:TCPLPACKMain Symbol:TCPLPACK
Stock trades at 560.0, above its 50dma 514.17. It also trades above its 200dma 435.11. The stock remains bullish on techicals
The 52 week high is at 604.00 and the 52week low is at 282.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 8.81% over past five years.
– has a low return on equity of 12.87% for last 3 years.
Competition
– The industry trades at a mean P/E of 17.2x. EPL Ltd trades at the industry’s max P/E of 30.49x. TCPLPACK trades at a P/E of 15.2x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. TCPLPACK has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 11.6%. The max 1- month return was given by Cosmo Films: a return of 36.47 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 246.0 cr compared to Rs 213.0 cr for period ended Mar 2020, a rise of 15.5%
Operating Profits reported at Rs 35.0 cr for period ended Mar 2021 vis-vis 28.0 for period ended Mar 2020 .
Operating Margins expanded 108.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 13.84 compared to Rs 10.93 for previous quarter ended Dec 2020 and Rs 13.12 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 904.0 cr for period ended Mar 2021 vis-vis sales of Rs 890.0 cr for the period ended Mar 2020, a growth of 1.5%. The 3 year sales cagr stood at 9.0%.
Operating margins expanded to 15.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 34.0 cr for period ended Mar 2021 vis-vis sales of Rs 37.0 cr for the period ended Mar 2020, falling 8.8%.
Company recorded a healthy Net Profit CAGR of 19.3% 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 115.0 cr for period ended Mar 2021 vis-vis Rs 86.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -8% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.32% vis-vis 0.32% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.24% vis-vis 35.8% for Mar 2021
Conclusion
– – The company has delivered a poor sales growth of 8.81% over past five years.
– has a low return on equity of 12.87% for last 3 years.
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 514.17 and is trading at 560.0, thus bullish price action wise.
