Mehabe score: 7 G Factor: 5 Piotski Score: 6 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 6.
Description
Natural Capsules is engaged in the Business of E.G.H Capsules.Site:524654Main Symbol:NATCAPSUQ
Stock trades at 167.0, above its 50dma 154.78. It also trades above its 200dma 122.31. The stock remains bullish on techicals
The 52 week high is at 188.50 and the 52week low is at 47.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 28.29%
-Debtor days have improved from 166.40 to 122.57 days.
Weakness
– The company has delivered a poor sales growth of 5.08% over past five years.
– has a low return on equity of 4.90% for last 3 years.
Competition
– The industry trades at a mean P/E of 12.4x. Natural Capsules trades at the industry’s max P/E of 19.62x. 524654 trades at a P/E of 19.6x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 9.0. 524654 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 8.8%. The max 1- month return was given by Natural Capsules: a return of 11.05 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 25.71 cr compared to Rs 16.0 cr for period ended Jun 2020, a rise of 60.7%
Operating Profits reported at Rs 4.26 cr for period ended Jun 2021 vis-vis 1.6 for period ended Jun 2020 .
Operating Margins expanded 656.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.37 compared to Rs 2.68 for previous quarter ended Mar 2021 and Rs 4.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 89.23 cr for period ended TTM vis-vis sales of Rs 79.51 cr for the period ended Mar 2021, a healthy growth of 10.9%. The 3 year sales cagr stood at 14.3%.
Operating margins expanded to 15.26% for period ended TTM vis-vis 14.01% for period ended Mar 2021, expansion of 125.0 bps.
Net Profit reported at Rs 6.58 cr for period ended TTM vis-vis sales of Rs 6.95 cr for the period ended Mar 2021, falling 5.6%.
Company recorded a healthy Net Profit CAGR of 50.8% 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 244% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 516% vis-vis a compounded profit growth of 68% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 45.63% vis-vis 45.63% for Mar 2021
Conclusion
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 28.29%
-Debtor days have improved from 166.40 to 122.57 days. – The company has delivered a poor sales growth of 5.08% over past five years.
– has a low return on equity of 4.90% 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 154.78 and is trading at 167.0, thus bullish price action wise.
