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
Piccadily Sugar & Allied Inds is engaged in Business of Distillery and Sugar.Site:507498Main Symbol:PICCASUG
Stock trades at 12.9, below its 50dma 13.54. However it is trading above its 200dma 8.66. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 13.54.
The 52 week high is at 20.10 and the 52week low is at 3.26
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of -5.25% for last 3 years.
-Earnings include an other income of Rs.5.50 Cr.
-Debtor days have increased from 43.08 to 52.25 days.
Competition
– The industry trades at a mean P/E of 38.3x. United Breweries trades at the industry’s max P/E of 142.36x. 507498 trades at a P/E of 34.5x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 507498 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by Jubilant Inds.: a return of 53.34 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.02 cr compared to Rs 5.91 cr for period ended Mar 2020, a rise of 52.6%
Company reported negative operating profit of Rs -0.78 cr for period ended Mar 2021. For same period last year, operating profit was -0.41
The EPS for Mar 2021 was Rs 1.34 compared to Rs -0.28 for previous quarter ended Dec 2020 and Rs -0.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 23.75 cr for period ended Mar 2021 vis-vis sales of Rs 38.89 cr for the period ended Mar 2020, a fall of 63.7%. The 3 year sales cagr stood at 47.1%.
Operating margins shrank to -4.38% for period ended Mar 2021 vis-vis 0.51% for period ended Mar 2020, contraction of 489.0 bps.
Net Profit reported at Rs 0.91 cr for period ended Mar 2021 vis-vis sales of Rs 0.02 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.31 cr for period ended Mar 2021 vis-vis Rs -2.1 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to -5.0% over the last 3 Years. – The stock has given a return of 184% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is -39% vis-vis a compounded sales growth of 47% over the last 3 Years. – The compounded profit growth on a TTM basis is 132% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.02% vis-vis 25.02% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of -5.25% for last 3 years.
-Earnings include an other income of Rs.5.50 Cr.
-Debtor days have increased from 43.08 to 52.25 days.
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 below its 50 DMA 13.54 and is trading at 12.9. Shows a near term lack of buying interest.
