Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 6.
Description
Empire Industries is engaged in the business of manufacture of container glass, trading in frozen foods, indenting and real estate.(Source : 201903 Annual Report Page No: 47)Site:509525
Market Cap:
Rs 461 cr
Price:
769.0
Trading pe:
18.8x
Book-value:
403/share
Div yield:
3.25 %
Earning yield:
8.03%
Face-value:
10.0/share
52week high:
920.00
52week low:
476.00
Technical Analysis
Stock trades at 769.0, above its 50dma 718.19. It also trades above its 200dma 654.53. The stock remains bullish on techicals
The 52 week high is at 920.00 and the 52week low is at 476.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is providing a good dividend yield of 3.25%.
– has been maintaining a healthy dividend payout of 36.75%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.28% over past five years.
Competition
– The industry trades at a mean P/E of 37.3x. La Opala RG trades at the industry’s max P/E of 61.09x. 509525 trades at a P/E of 18.8x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. 509525 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 4.1%. The max 1- month return was given by Hind.Natl.Glass: a return of 32.8 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 129.72 cr compared to Rs 145.0 cr for period ended Mar 2020, a fall of 10.5%
Operating Profits reported at Rs 1.71 cr for period ended Mar 2021 vis-vis 16.4 for period ended Mar 2020 .
Operating Margins contracted -999.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.42 compared to Rs 2.1 for previous quarter ended Dec 2020 and Rs 25.25 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 490.0 cr for period ended Mar 2021 vis-vis sales of Rs 575.0 cr for the period ended Mar 2020, a fall of 17.3%. The 3 year sales cagr stood at 1.2%.
Operating margins shrank to 9.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 13.0 cr for period ended Mar 2021 vis-vis sales of Rs 34.0 cr for the period ended Mar 2020, falling 161.5%.
Company reported a poor Net Profit CAGR of -34.8% 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 15.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 38% on a 1 Year basis vis-vis a return of -25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 14.96% vis-vis 14.48% for Dec 2020
Conclusion
– Stock is providing a good dividend yield of 3.25%.
– has been maintaining a healthy dividend payout of 36.75% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.28% over past five years.
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 718.19 and is trading at 769.0 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
