Mehabe score: 4 G Factor: 7 Piotski Score: 7 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 7 and Piotski score of 7.
Description
Deepak Spinners is engaged in the business of manufacturer of Synthetic staple Fibres Yarn, Man-made Fibres blended yarn.Site:514030
Market Cap:
Rs 135 cr
Price:
188.0
Trading pe:
10.3x
Book-value:
195/share
Div yield:
0.80 %
Earning yield:
8.74%
Face-value:
10.0/share
52week high:
188.50
52week low:
53.90
Technical Analysis
Stock trades at 188.0, above its 50dma 136.73. It also trades above its 200dma 101.79. The stock remains bullish on techicals
The 52 week high is at 188.50 and the 52week low is at 53.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.96 times its book value
Weakness
– The company has delivered a poor sales growth of 1.17% over past five years.
-Tax rate seems low
– has a low return on equity of 8.64% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 12.6x. Sangam India trades at the industry’s max P/E of 86.52x. 514030 trades at a P/E of 10.3x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. 514030 has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 24.0%. The max 1- month return was given by Rel. Chemotex: a return of 46.08 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 111.32 cr compared to Rs 84.08 cr for period ended Mar 2020, a rise of 32.4%
Operating Profits reported at Rs 17.32 cr for period ended Mar 2021 vis-vis 5.11 for period ended Mar 2020 .
Operating Margins expanded 948.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.99 compared to Rs 13.02 for previous quarter ended Dec 2020 and Rs 9.36 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 397.0 cr for period ended Mar 2021 vis-vis sales of Rs 461.0 cr for the period ended Mar 2020, a fall of 16.1%. The 3 year sales cagr stood at -3.3%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 16.0 cr for period ended Mar 2021 vis-vis sales of Rs 15.0 cr for the period ended Mar 2020, rising 6.2%.
Company recorded a healthy Net Profit CAGR of 38.7% 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 11.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 173% on a 1 Year basis vis-vis a return of 37% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 36% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 54.24% vis-vis 54.24% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.96 times its book value – The company has delivered a poor sales growth of 1.17% over past five years.
-Tax rate seems low
– has a low return on equity of 8.64% for last 3 years.
-‘s cost of borrowing seems high
