Mehabe score: 6 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
Bhagiradha Chemicals & Industries is engaged in manufacturing of Agro Chemicals.(Source : 201903 Annual Report Page No: 93)Site:531719Main Symbol:BHAGCHEM
Stock trades at 666.0, above its 50dma 644.31. It also trades above its 200dma 515.21. The stock remains bullish on techicals
The 52 week high is at 734.90 and the 52week low is at 290.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 50.40% CAGR over last 5 years
-‘s median sales growth is 19.30% of last 10 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 24.90%
– has a low return on equity of 11.86% for last 3 years.
-Debtor days have increased from 55.21 to 68.50 days.
Competition
– The industry trades at a mean P/E of 28.0x. P I Industries trades at the industry’s max P/E of 62.42x. 531719 trades at a P/E of 20.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 9.0. 531719 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -6.6%. The max 1- month return was given by P I Industries: a return of 7.99 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 98.45 cr compared to Rs 61.37 cr for period ended Jun 2020, a rise of 60.4%
Operating Profits reported at Rs 15.05 cr for period ended Jun 2021 vis-vis 6.68 for period ended Jun 2020 .
Operating Margins expanded 440.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.18 compared to Rs 8.98 for previous quarter ended Mar 2021 and Rs 3.1 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 355.0 cr for period ended TTM vis-vis sales of Rs 318.0 cr for the period ended Mar 2021, a healthy growth of 10.4%. The 3 year sales cagr stood at -2.6%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 29.0 cr for period ended TTM vis-vis sales of Rs 23.0 cr for the period ended Mar 2021, rising 20.7%.
Company recorded a healthy Net Profit CAGR of 17.2% 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 16.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 90% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 93% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 2618% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.41% vis-vis 2.89% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 72.69% vis-vis 72.21% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 50.40% CAGR over last 5 years
-‘s median sales growth is 19.30% of last 10 years – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 24.90%
– has a low return on equity of 11.86% for last 3 years.
-Debtor days have increased from 55.21 to 68.50 days.
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 644.31 and is trading at 666.0, thus bullish price action wise.
