Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 7.
Description
Formerly known as Kettlewell Bullen & Co Ltd, it was appointed as a managing agent of Fort Gloster Jute Manufacturing Company Limited which eventually became Fort Gloster Industries Ltd. The current management acquired the company in 1954 and eventually in 1992, the Jute division of Fort Gloster Industries Ltd was demerged into a seperate company called Gloster Jute Mills Ltd which was then renamed as Gloster Ltd.
The principal business of the company is manufacturing and exporting all kinds of Jute and Jute allied products.
Main Points
Established player in Jute Industry
Gloster Limited is a One stop shop for all kinds of jute products and it also exports them across the globe. They keep adding new and latest version of the jute products in its product portfolio.
Gloster has very wide and diversified product portfolio for jute and jute blended products.Site:542351Main Symbol:GLOSTERLTD
Stock trades at 1277.0, above its 50dma 1106.08. It also trades above its 200dma 783.73. The stock remains bullish on techicals
The 52 week high is at 1367.80 and the 52week low is at 423.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.70 times its book value
– has been maintaining a healthy dividend payout of 29.08%
Weakness
– has a low return on equity of 3.92% for last 3 years.
-Earnings include an other income of Rs.27.58 Cr.
Competition
– The industry trades at a mean P/E of 17.2x. Sheela Foam trades at the industry’s max P/E of 51.21x. 542351 trades at a P/E of 18.0x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. 542351 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 2.5%. The max 1- month return was given by Advance Lifes.: a return of 37.37 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 175.0 cr compared to Rs 113.0 cr for period ended Mar 2020, a rise of 54.9%
Operating Profits reported at Rs 21.0 cr for period ended Mar 2021 vis-vis 14.0 for period ended Mar 2020 .
Operating Margins contracted -38.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 35.36 compared to Rs 19.65 for previous quarter ended Dec 2020 and Rs 9.91 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 493.0 cr for period ended Mar 2021 vis-vis sales of Rs 495.0 cr for the period ended Mar 2020, a fall of 0.4%. The 3 year sales cagr stood at 2.1%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 41.0 cr for period ended Mar 2021 vis-vis sales of Rs 20.0 cr for the period ended Mar 2020, rising 51.2%.
Company reported a poor Net Profit CAGR of -0.8% 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 43.0 cr for period ended Mar 2021 vis-vis Rs 9.0 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 196% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -0% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 38% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.34% vis-vis 12.18% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.70 times its book value
– has been maintaining a healthy dividend payout of 29.08% – has a low return on equity of 3.92% for last 3 years.
-Earnings include an other income of Rs.27.58 Cr.
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 1106.08 and is trading at 1277.0, thus bullish price action wise.
