Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
JL Morison (India) Ltd is engaged in the trading and manufacturing of personal care products.Site:506522
Market Cap:
Rs 284 cr
Price:
2071.0
Trading pe:
56.5x
Book-value:
1,076/share
Div yield:
0.05 %
Earning yield:
1.41%
Face-value:
10.0/share
52week high:
2170.00
52week low:
1650.50
Technical Analysis
Stock trades at 2071.0, above its 50dma 1976.36. It also trades above its 200dma 1893.92. The stock remains bullish on techicals
The 52 week high is at 2170.00 and the 52week low is at 1650.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 1.31% over past five years.
– has a low return on equity of 3.32% for last 3 years.
-Earnings include an other income of Rs.3.08 Cr.
Competition
– The industry trades at a mean P/E of 43.2x. 3M India trades at the industry’s max P/E of 197.78x. 506522 trades at a P/E of 56.5x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 506522 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 14.2%. The max 1- month return was given by Redington India: a return of 50.16 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 27.42 cr compared to Rs 23.87 cr for period ended Mar 2020, a rise of 14.9%
Company reported operating profit of Rs 1.97 cr for period ended Mar 2021, operating profit margin at 7.2 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 16.48 compared to Rs 12.31 for previous quarter ended Dec 2020 and Rs 1.32 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 100.0 cr for period ended Mar 2021 vis-vis sales of Rs 93.0 cr for the period ended Mar 2020, a growth of 7.0%. The 3 year sales cagr stood at 5.2%.
Operating margins expanded to 4.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, rising 20.0%.
Company reported a poor Net Profit CAGR of -20.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 3.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 12% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 36% vis-vis a compounded profit growth of -6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.1% vis-vis 25.1% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 1.31% over past five years.
– has a low return on equity of 3.32% for last 3 years.
-Earnings include an other income of Rs.3.08 Cr.
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 1976.36 and is trading at 2071.0, thus bullish price action wise.
