Mehabe score: 4 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Kaycee Industries is a manufacturing and trading company in the field of Industrial switches, Counters, Watermeter, Electrical Components Etc.Site:504084Main Symbol:KAYCEEI
Stock trades at 4280.0, above its 50dma 3610.72. It also trades above its 200dma 3155.61. The stock remains bullish on techicals
The 52 week high is at 4835.50 and the 52week low is at 2566.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 2.88 times its book value
-The company has delivered a poor sales growth of 0.29% over past five years.
– has a low return on equity of 9.07% for last 3 years.
-Earnings include an other income of Rs.0.50 Cr.
– has high debtors of 164.51 days.
Competition
– The industry trades at a mean P/E of 28.8x. A B B trades at the industry’s max P/E of 154.39x. 504084 trades at a P/E of 36.0x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 504084 has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is -0.3%. The max 1- month return was given by Kaycee Inds.: a return of 12.45 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.67 cr compared to Rs 5.89 cr for period ended Mar 2020, a rise of 30.2%
Operating Profits reported at Rs 0.54 cr for period ended Mar 2021 vis-vis 0.54 for period ended Mar 2020 .
Operating Margins contracted -212.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 51.0 compared to Rs 11.0 for previous quarter ended Dec 2020 and Rs 24.0 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 22.72 cr for period ended Mar 2021 vis-vis sales of Rs 23.43 cr for the period ended Mar 2020, a fall of 3.1%. The 3 year sales cagr stood at -3.0%.
Operating margins shrank to 5.37% for period ended Mar 2021 vis-vis 10.5% for period ended Mar 2020, contraction of 513.0 bps.
Net Profit reported at Rs 0.85 cr for period ended Mar 2021 vis-vis sales of Rs 1.42 cr for the period ended Mar 2020, falling 67.1%.
Company reported a poor Net Profit CAGR of -9.1% 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 0.99 cr for period ended Mar 2021 vis-vis Rs 0.67 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 44% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% vis-vis a compounded profit growth of -13% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.13% vis-vis 23.91% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 2.88 times its book value
-The company has delivered a poor sales growth of 0.29% over past five years.
– has a low return on equity of 9.07% for last 3 years.
-Earnings include an other income of Rs.0.50 Cr.
– has high debtors of 164.51 days.
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 3610.72 and is trading at 4280.0 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
