Mehabe score: 4 G Factor: 6 Piotski Score: 6 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 6.
Description
Paramount Cosmetics has been a trusted name in the Indian traditional cosmetic segment since 1985. It has been grooming India with safe, hygienic and best in quality color cosmetics like bindis, kumkum and kaja. Today we are one of leading manufacturers and marketers of cosmetics in India.Site:507970Main Symbol:PARMCOS-B
Stock trades at 30.8, above its 50dma 29.26. It also trades above its 200dma 22.92. The stock remains bullish on techicals
The 52 week high is at 36.60 and the 52week low is at 13.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.77 times its book value
Weakness
– The company has delivered a poor sales growth of -18.64% over past five years.
– has a low return on equity of 0.15% for last 3 years.
-Earnings include an other income of Rs.5.56 Cr.
-Debtor days have increased from 93.28 to 126.19 days.
Competition
– The industry trades at a mean P/E of 36.6x. Dabur India trades at the industry’s max P/E of 58.79x. 507970 trades at a P/E of 5.51x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 507970 has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is -5.9%. The max 1- month return was given by Paramount Cosmet: a return of 1.32 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 5.36 cr compared to Rs 4.23 cr for period ended Sep 2020, a rise of 26.7%
Operating Profits reported at Rs 0.42 cr for period ended Sep 2021 vis-vis 0.13 for period ended Sep 2020 .
Operating Margins expanded 476.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs -0.02 compared to Rs 2.68 for previous quarter ended Jun 2021 and Rs -1.07 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.63 cr for period ended TTM vis-vis sales of Rs 17.5 cr for the period ended Mar 2021, a healthy growth of 10.9%. The 3 year sales cagr stood at -3.5%.
Operating margins shrank to 7.23% for period ended TTM vis-vis 14.8% for period ended Mar 2021, contraction of 757.0 bps.
Net Profit reported at Rs 3.22 cr for period ended TTM vis-vis sales of Rs 0.34 cr for the period ended Mar 2021, rising 0%.
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 89% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 439% vis-vis a compounded profit growth of 104% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.19% vis-vis 25.19% for Jun 2021
Conclusion
– Stock is trading at 0.77 times its book value – The company has delivered a poor sales growth of -18.64% over past five years.
– has a low return on equity of 0.15% for last 3 years.
-Earnings include an other income of Rs.5.56 Cr.
-Debtor days have increased from 93.28 to 126.19 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 above its 50 DMA 29.26 and is trading at 30.8, thus bullish price action wise.
