Mehabe score: 5 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
DE Nora India is also its principal place of business and is involved in the business of manufacturing and servicing of Electrolytic products.Site:DENORAMain Symbol:DENORA
Stock trades at 406.0, above its 50dma 353.73. It also trades above its 200dma 292.11. The stock remains bullish on techicals
The 52 week high is at 437.95 and the 52week low is at 190.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 3.22 times its book value
– has a low return on equity of 8.80% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.1x. GMM Pfaudler trades at the industry’s max P/E of 93.28x. DENORA trades at a P/E of 38.2x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. DENORA has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -0.3%. The max 1- month return was given by Bharat Dynamics: a return of 6.73 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 5.11 cr compared to Rs 14.21 cr for period ended Jun 2020, a fall of 64.0%
Company reported negative operating profit of Rs -0.67 cr for period ended Jun 2021. For same period last year, operating profit was 2.37
The EPS for Jun 2021 was Rs -1.53 compared to Rs 6.31 for previous quarter ended Mar 2021 and Rs 3.41 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 41.44 cr for period ended TTM vis-vis sales of Rs 50.54 cr for the period ended Mar 2021, a fall of 22.0%. The 3 year sales cagr stood at 8.1%.
Operating margins shrank to 12.79% for period ended TTM vis-vis 16.52% for period ended Mar 2021, contraction of 373.0 bps.
Net Profit reported at Rs 3.03 cr for period ended TTM vis-vis sales of Rs 5.65 cr for the period ended Mar 2021, falling 86.5%.
Company recorded a healthy Net Profit CAGR of 24.0% 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 16.15 cr for period ended Mar 2021 vis-vis Rs -7.24 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 9.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 5% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is -30% vis-vis a compounded profit growth of 48% 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 46.32% vis-vis 46.32% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 3.22 times its book value
– has a low return on equity of 8.80% 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 353.73 and is trading at 406.0, thus bullish price action wise.
