Mehabe score: 4 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Lime Chemicals is engaged in the Business of manufacturing Calcium Carbonate. It is used as input material in various industrial sectors including Tooth Paste, Pharmaceuticals, PVC products, Rubber, Plastic, Polymer, Cable, Leather, Paper and Paints.Site:507759Main Symbol:LIMECHM
Stock trades at 26.4, above its 50dma 26.26. It also trades above its 200dma 23.68. The stock remains bullish on techicals
The 52 week high is at 32.25 and the 52week low is at 12.83
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of -4.65% over past five years.
-Promoter holding is low: 28.41%
-Earnings include an other income of Rs.1.25 Cr.
Competition
– The industry trades at a mean P/E of 26.5x. Pidilite Inds. trades at the industry’s max P/E of 84.49x. 507759 trades at a P/E of 12.9x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. 507759 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 7.1%. The max 1- month return was given by Gujarat Fluoroch: a return of 18.19 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2.0 cr compared to Rs 6.0 cr for period ended Jun 2020, a fall of 66.7%
The EPS for Jun 2021 was Rs 16.76 compared to Rs -0.69 for previous quarter ended Mar 2021 and Rs 0.71 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.0 cr for period ended TTM vis-vis sales of Rs 22.0 cr for the period ended Mar 2021, a fall of 15.8%. The 3 year sales cagr stood at -23.8%.
Operating margins shrank to -8.0% for period ended TTM vis-vis 3.0% for period ended Mar 2021, contraction of 1100.0 bps.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, rising 100.0%.
Company recorded a healthy Net Profit CAGR of 54.2% 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 stock has given a return of 23% on a 1 Year basis vis-vis a return of -34% over the last 3 Years. – The compounded sales growth on a TTM bassis is -29% vis-vis a compounded sales growth of -25% over the last 3 Years. – The compounded profit growth on a TTM basis is 503% vis-vis a compounded profit growth of -44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 7.38% vis-vis 7.38% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 64.16% vis-vis 63.84% for Mar 2021
Conclusion
– – The company has delivered a poor sales growth of -4.65% over past five years.
-Promoter holding is low: 28.41%
-Earnings include an other income of Rs.1.25 Cr.
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 26.26 and is trading at 26.4 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
