Mehabe score: 7 G Factor: 7 Piotski Score: 7 The stock has a rating . 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 7 and Piotski score of 7.
Description
Dhanalaxmi Roto Spinners is mainly engaged in trading activity in the line of wood pulp, paper and waste paper market.(Source : 201903 Annual Report Page No: 42)Site:521216Main Symbol:DHANROTO
Stock trades at 73.6, above its 50dma 51.67. It also trades above its 200dma 34.85. The stock remains bullish on techicals
The 52 week high is at 91.70 and the 52week low is at 15.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 38.04% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 7.93% over past five years.
-Earnings include an other income of Rs.3.58 Cr.
Competition
– The industry trades at a mean P/E of 15.5x. RSWM Ltd trades at the industry’s max P/E of 45.41x. 521216 trades at a P/E of 3.36x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. 521216 has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 32.5%. The max 1- month return was given by Dhanalaxmi Roto: a return of 52.38 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 37.69 cr compared to Rs 11.36 cr for period ended Jun 2020, a rise of 231.8%
Company reported operating profit of Rs 4.3 cr for period ended Jun 2021, operating profit margin at 11.4 %.
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 11.79 compared to Rs 3.77 for previous quarter ended Mar 2021 and Rs 0.36 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 99.17 cr for period ended TTM vis-vis sales of Rs 72.84 cr for the period ended Mar 2021, a healthy growth of 26.6%. The 3 year sales cagr stood at 0.5%.
Operating margins expanded to 8.01% for period ended TTM vis-vis 4.83% for period ended Mar 2021, expansion of 318.0 bps.
Net Profit reported at Rs 8.52 cr for period ended TTM vis-vis sales of Rs 4.05 cr for the period ended Mar 2021, rising 52.5%.
Company recorded a healthy Net Profit CAGR of 48.0% 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 6.14 cr for period ended Mar 2021 vis-vis Rs 1.72 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 332% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is 59% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 617% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 52.36% vis-vis 52.36% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 38.04% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 7.93% over past five years.
-Earnings include an other income of Rs.3.58 Cr.
