Mehabe score: 5 G Factor: 6 Piotski Score: 4 The stock has a rating OBSERVE & 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 6 and Piotski score of 4. Site:DPABHUSHANMain Symbol:www.nseindia.com
Stock trades at 224.0, above its 50dma 199.78. It also trades above its 200dma 154.14. The stock remains bullish on techicals
The 52 week high is at 239.00 and the 52week low is at 70.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 29.17%
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 23.6x. Titan Company trades at the industry’s max P/E of 164.5x. DPABHUSHAN trades at a P/E of 15.5x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. DPABHUSHAN has a G-Factor of 6 and Piotski scoreof 4.
– Average 1 month return for industry is 7.9%. The max 1- month return was given by Thangamayil Jew.: a return of 17.05 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 448.0 cr compared to Rs 172.0 cr for period ended Sep 2020, a rise of 160.5%
Operating Profits reported at Rs 19.0 cr for period ended Sep 2021 vis-vis 12.0 for period ended Sep 2020 .
Operating Margins contracted -273.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 4.88 compared to Rs 1.92 for previous quarter ended Jun 2021 and Rs 3.2 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1628.0 cr for period ended TTM vis-vis sales of Rs 1215.0 cr for the period ended Mar 2021, a healthy growth of 25.4%. The 3 year sales cagr stood at 26.1%.
Net Profit reported at Rs 32.0 cr for period ended TTM vis-vis sales of Rs 27.0 cr for the period ended Mar 2021, rising 15.6%.
Company recorded a healthy Net Profit CAGR of 38.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 33.0% compared to 29.0% over the last 3 Years. – The stock has given a return of 115% on a 1 Year basis vis-vis a return of 78% over the last 3 Years. – The compounded sales growth on a TTM bassis is 138% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is 60% vis-vis a compounded profit growth of 50% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 29.17% – Though the company is reporting repeated profits, it is not paying out dividend
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 199.78 and is trading at 224.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
