Mehabe score: 8 G Factor: 4 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 4 and Piotski score of 5.
Description
Ludlow Jute & Specialities Ltd has developed products like Jute Mesh/Scrim for Roofing Felt, Agriculture, Horticulture and Webbing for Furniture Industry, Rubber Bonded jute cloth for Landscaping, special fabrics for Furnishing and Apparel, Soil Saver known as Geo-textile and Carpet-backing Cloth.Site:526179Main Symbol:LUDLOWJUT
Stock trades at 90.1, above its 50dma 86.05. It also trades above its 200dma 82.74. The stock remains bullish on techicals
The 52 week high is at 102.00 and the 52week low is at 70.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.60 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.13% over past five years.
– has a low return on equity of 1.26% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 24.9x. Ludlow Jute trades at the industry’s max P/E of 3234.67x. 526179 trades at a P/E of 3235.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 526179 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 1.7%. The max 1- month return was given by Advance Lifes.: a return of 44.53 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 128.64 cr compared to Rs 47.69 cr for period ended Jun 2020, a rise of 169.7%
Company reported operating profit of Rs 7.96 cr for period ended Jun 2021, operating profit margin at 6.2 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 2.63 compared to Rs 1.46 for previous quarter ended Mar 2021 and Rs -3.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 500.0 cr for period ended TTM vis-vis sales of Rs 419.0 cr for the period ended Mar 2021, a healthy growth of 16.2%. The 3 year sales cagr stood at 10.7%.
Operating margins expanded to 5.0% for period ended TTM vis-vis 3.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, rising 100.0%.
Company recorded a healthy Net Profit CAGR of 44.2% 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 23.0 cr for period ended Mar 2021 vis-vis Rs 6.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 4% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -99% vis-vis a compounded profit growth of -74% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 30.21% vis-vis 30.21% for Mar 2021
Conclusion
– Stock is trading at 0.60 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.13% over past five years.
– has a low return on equity of 1.26% for last 3 years.
– might be capitalizing the interest cost
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 86.05 and is trading at 90.1, thus bullish price action wise.
