Mehabe score: 7 G Factor: 6 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 6 and Piotski score of 7.
Description
PIX Transmissions Ltd. is the leading manufacturer of Belts and related mechanical Power Transmission products in India. The Company features state-of-the-art Belt manufacturing units as well as an ultra-sophisticated, automated Rubber Mixing facility. #
Main Points
Product Portfolio
The company’s product portfolio includes Industrial belts, agricultural belts, lawn & garden belts, Automotive belts, hi-power rated belts, power-ware products and various accessories as well. #
It products are used in various machinery and thus find applications in diverse industries viz. automotive, agriculture, ceramic, cold storage, food processing, domestic appliance, cement, machine tools, oil and gas, packaging, paper, pharmaceutical, steel, textile and many more.Site:500333Main Symbol:PIXTRANS
Stock trades at 871.0, above its 50dma 604.7. It also trades above its 200dma 396.83. The stock remains bullish on techicals
The 52 week high is at 930.00 and the 52week low is at 123.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 58.25% CAGR over last 5 years
Weakness
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Competition
– The industry trades at a mean P/E of 22.0x. Elgi Rubber Co trades at the industry’s max P/E of 299.87x. 500333 trades at a P/E of 18.3x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 500333 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 11.9%. The max 1- month return was given by Pix Transmission: a return of 62.39 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 130.0 cr compared to Rs 85.0 cr for period ended Mar 2020, a rise of 52.9%
Operating Profits reported at Rs 35.0 cr for period ended Mar 2021 vis-vis 17.0 for period ended Mar 2020 .
Operating Margins expanded 692.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 16.09 compared to Rs 13.48 for previous quarter ended Dec 2020 and Rs 6.22 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 400.0 cr for period ended Mar 2021 vis-vis sales of Rs 304.0 cr for the period ended Mar 2020, a healthy growth of 24.0%. The 3 year sales cagr stood at 16.5%.
Operating margins expanded to 28.0% for period ended Mar 2021 vis-vis 20.0% for period ended Mar 2020, expansion of 800.0 bps.
Net Profit reported at Rs 65.0 cr for period ended Mar 2021 vis-vis sales of Rs 30.0 cr for the period ended Mar 2020, rising 53.8%.
Company recorded a healthy Net Profit CAGR of 41.4% 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 24.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 591% 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 31% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 109% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.05% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 38.21% vis-vis 38.26% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 58.25% CAGR over last 5 years –
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 604.7 and is trading at 871.0, thus bullish price action wise.
