Mehabe score: 7 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Vishnu Chemicals is engaged in the business of Specialty Chemicals.Site:VISHNUMain Symbol:VISHNU
Stock trades at 868.0, above its 50dma 655.23. It also trades above its 200dma 452.09. The stock remains bullish on techicals
The 52 week high is at 805.50 and the 52week low is at 137.50
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 3.80 times its book value
-The company has delivered a poor sales growth of 7.17% over past five years.
– has a low return on equity of 11.78% for last 3 years.
-Promoters have pledged 40.40% of their holding.
Competition
– The industry trades at a mean P/E of 27.6x. Clean Science trades at the industry’s max P/E of 110.72x. VISHNU trades at a P/E of 30.9x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. VISHNU has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is -6.2%. The max 1- month return was given by Vishnu Chemicals: a return of 8.19 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 240.0 cr compared to Rs 182.0 cr for period ended Sep 2020, a rise of 31.9%
Operating Profits reported at Rs 33.0 cr for period ended Sep 2021 vis-vis 20.0 for period ended Sep 2020 .
Operating Margins expanded 276.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 13.92 compared to Rs 9.7 for previous quarter ended Jun 2021 and Rs 6.24 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 784.0 cr for period ended TTM vis-vis sales of Rs 679.0 cr for the period ended Mar 2021, a healthy growth of 13.4%. The 3 year sales cagr stood at 0.6%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 43.0 cr for period ended TTM vis-vis sales of Rs 34.0 cr for the period ended Mar 2021, rising 20.9%.
Company recorded a healthy Net Profit CAGR of 21.5% 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 67.0 cr for period ended Mar 2021 vis-vis Rs 49.0 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 13.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 434% on a 1 Year basis vis-vis a return of 74% over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 20% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.2% vis-vis 0.08% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 24.8% vis-vis 24.92% for Jun 2021
Conclusion
– – Stock is trading at 3.80 times its book value
-The company has delivered a poor sales growth of 7.17% over past five years.
– has a low return on equity of 11.78% for last 3 years.
-Promoters have pledged 40.40% of their holding.
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 655.23 and is trading at 868.0 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
