Mehabe score: 3 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
Gujarat Petrosynthese is primarily engaged in the business of plastic polymers and blends.Site:506858
Market Cap:
Rs 28.0 cr
Price:
46.8
Trading pe:
x
Book-value:
64.4/share
Div yield:
0.00 %
Earning yield:
-2.41%
Face-value:
10.0/share
52week high:
46.85
52week low:
5.43
Technical Analysis
Stock trades at 46.8, above its 50dma 36.61. It also trades above its 200dma 24.67. The stock remains bullish on techicals
The 52 week high is at 46.85 and the 52week low is at 5.43
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.73 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.63% over past five years.
– has a low return on equity of -5.51% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.8x. Responsive Ind trades at the industry’s max P/E of 184.33x. 506858 trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. 506858 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 16.5%. The max 1- month return was given by Jai Corp: a return of 40.32 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 6.42 cr compared to Rs 4.45 cr for period ended Mar 2020, a rise of 44.3%
Company reported negative operating profit of Rs -0.36 cr for period ended Mar 2021. For same period last year, operating profit was -0.59
The EPS for Mar 2021 was Rs -0.03 compared to Rs 9.52 for previous quarter ended Dec 2020 and Rs 3.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.34 cr for period ended Mar 2021 vis-vis sales of Rs 20.28 cr for the period ended Mar 2020, a fall of 4.9%. The 3 year sales cagr stood at 0.6%.
Operating margins expanded to -6.36% for period ended Mar 2021 vis-vis -6.61% for period ended Mar 2020, expansion of 25.0 bps.
Net Profit reported at Rs 5.46 cr for period ended Mar 2021 vis-vis sales of Rs 2.02 cr for the period ended Mar 2020, rising 0%.
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -1.0% compared to -6.0% over the last 3 Years. – The stock has given a return of 722% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 91% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 35.17% vis-vis 35.17% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.73 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.63% over past five years.
– has a low return on equity of -5.51% for last 3 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 36.61 and is trading at 46.8, thus bullish price action wise.
