Mehabe score: 5 G Factor: 2 Piotski Score: 8 The stock has a rating SELL. 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 8.
Description
Mitsu Chem Plast Limited is a manufacturer of a wide range of products in the blow moulding, injection moulding and also customised moulding (combination of processes) catering to specific customer needs. [1] Site:MITSU Main Symbol:MITSU
Stock trades at 290.0, below its 50dma 295.59. However it is trading above its 200dma 248.18. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 295.59.
The 52 week high is at 374.70 and the 52week low is at 100.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 38.32% CAGR over last 5 years
Weakness
– Stock is trading at 7.69 times its book value
Competition
– The industry trades at a mean P/E of 27.8x. Responsive Ind trades at the industry’s max P/E of 275.07x. MITSU trades at a P/E of 33.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. MITSU has a G-Factor of 2 and Piotski scoreof 8.
– Average 1 month return for industry is 0.0%. The max 1- month return was given by Responsive Ind: a return of 16.93 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 66.38 cr compared to Rs 48.81 cr for period ended Dec 2020, a rise of 36.0% .
vis-vis 5.99 for period ended Dec 2020 .
Operating Margins contracted -434.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 5.26 cr for period ended Dec 2021 and operating profit margin at 7.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.7 compared to Rs 2.04 for previous quarter ended Sep 2021 and Rs 2.06 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 235.0 cr for period ended TTM vis-vis sales of Rs 178.0 cr for the period ended Mar 2021, a healthy growth of 24.3%. The 3 year sales cagr stood at 23.4%.
Operating margins shrank to 10.0% for period ended TTM vis-vis 13.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 35.7% 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 13.0 cr for period ended Mar 2021 vis-vis Rs 4.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 75% over the last 3 Years. – The compounded sales growth on a TTM bassis is 45% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 21% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.06% vis-vis 26.97% for Sep 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 38.32% CAGR over last 5 years – Stock is trading at 7.69 times its book value
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 295.59 and is trading at 290.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
