Investment Memo: 513507

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Our Rating:

Mehabe score: 6
G Factor: 5
Piotski Score: 8
The stock has a rating . 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 5 and Piotski score of 8.

Description

Gujarat Containers is primarily focuses on manufacturing of variety of specialized Barrels.Site: 513507Main Symbol: GUJCONT

Price Chart

Market Cap: Rs 31.5 cr Price: 55.8 Trading pe: 8.43x
Book-value: 25.8/share Div yield: 0.00 % Earning yield: 15.42%
Face-value: 10.0/share 52week high: 53.00 52week low: 10.80

Technical Analysis

  • Stock trades at 55.8, above its 50dma 43.36. It also trades above its 200dma 28.03. The stock remains bullish on techicals
  • The 52 week high is at 53.00 and the 52week low is at 10.80

Price Chart

P/E Chart

Sales and Margin

Strengths

– is expected to give good quarter

Weakness

– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 11.66% over past five years.
– has a low return on equity of 12.52% for last 3 years.

Competition

– The industry trades at a mean P/E of 12.9x. Huhtamaki India trades at the industry’s max P/E of 73.39x. 513507 trades at a P/E of 8.43x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. 513507 has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is -1.5%. The max 1- month return was given by Guj. Containers: a return of 14.34 %

Quarterly Results

  • Sales for period ended Sep 2021 is Rs 40.69 cr compared to Rs 21.11 cr for period ended Sep 2020, a rise of 92.8%
  • Operating Profits reported at Rs 3.19 cr for period ended Sep 2021 vis-vis 1.53 for period ended Sep 2020 .
  • Operating Margins expanded 59.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
  • The EPS for Sep 2021 was Rs 2.81 compared to Rs 2.35 for previous quarter ended Jun 2021 and Rs 0.94 for Sep 2020

Profit & Loss Statement

Profit&Loss Comments

  • Company reported sales of Rs 126.0 cr for period ended TTM vis-vis sales of Rs 87.0 cr for the period ended Mar 2021, a healthy growth of 31.0%. The 3 year sales cagr stood at 16.8%.
  • Net Profit reported at Rs 5.0 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, rising 40.0%.
  • Company recorded a healthy Net Profit CAGR of 71.0% 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 13.0% over the last 3 Years.
– The stock has given a return of 391% on a 1 Year basis vis-vis a return of 73% over the last 3 Years.
– The compounded sales growth on a TTM bassis is 50% vis-vis a compounded sales growth of 14% over the last 3 Years.
– The compounded profit growth on a TTM basis is 260% vis-vis a compounded profit growth of 48% over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 42.01% vis-vis 42.01% for Jun 2021

Conclusion

– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 11.66% over past five years.
– has a low return on equity of 12.52% for last 3 years.

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