Mehabe score: 5 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
Permanent Magnets is one of the flagship Companies of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. PML has started with supplies of Gas meters parts and accessories.Site:504132Main Symbol:PERMAGN
Stock trades at 334.0, above its 50dma 318.18. It also trades above its 200dma 229.56. The stock remains bullish on techicals
The 52 week high is at 383.80 and the 52week low is at 103.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 77.35% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.96%
Weakness
– The company has delivered a poor sales growth of 11.59% over past five years.
-Promoter holding has decreased over last 3 years: -11.77%
Competition
– The industry trades at a mean P/E of 31.4x. Amber Enterp. trades at the industry’s max P/E of 124.05x. 504132 trades at a P/E of 17.8x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 504132 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 11.3%. The max 1- month return was given by Genus Power: a return of 26.57 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 37.22 cr compared to Rs 22.99 cr for period ended Mar 2020, a rise of 61.9%
Operating Profits reported at Rs 8.85 cr for period ended Mar 2021 vis-vis 6.18 for period ended Mar 2020 .
Operating Margins contracted -310.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.47 compared to Rs 5.29 for previous quarter ended Dec 2020 and Rs 4.58 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 117.0 cr for period ended Mar 2021 vis-vis sales of Rs 107.0 cr for the period ended Mar 2020, a growth of 8.5%. The 3 year sales cagr stood at 8.0%.
Operating margins expanded to 22.0% for period ended Mar 2021 vis-vis 19.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 16.0 cr for period ended Mar 2021 vis-vis sales of Rs 14.0 cr for the period ended Mar 2020, rising 12.5%.
Company recorded a healthy Net Profit CAGR of 47.4% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 29.0% compared to 37.0% over the last 3 Years. – The stock has given a return of 215% on a 1 Year basis vis-vis a return of 48% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 13% vis-vis a compounded profit growth of 52% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 39.96% vis-vis 39.96% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 77.35% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.96% – The company has delivered a poor sales growth of 11.59% over past five years.
-Promoter holding has decreased over last 3 years: -11.77%
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 318.18 and is trading at 334.0, thus bullish price action wise.
