Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
Jyoti Resins and Adhesives is a manufacturer of synthetic resin adhesives. The Company manufactures various types of wood working adhesives under the brand name of EURO 7000.Site:514448Main Symbol:JYOTIRES
Stock trades at 686.0, below its 50dma 742.17. However it is trading above its 200dma 567.8. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 742.17.
The 52 week high is at 960.00 and the 52week low is at 168.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 123.14% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.43%
-‘s median sales growth is 37.75% of last 10 years
Weakness
– Earnings include an other income of Rs.6.42 Cr.
– has high debtors of 187.71 days.
Competition
– The industry trades at a mean P/E of 26.3x. Pidilite Inds. trades at the industry’s max P/E of 86.54x. 514448 trades at a P/E of 22.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. 514448 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 2.5%. The max 1- month return was given by Alkyl Amines: a return of 10.34 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 27.01 cr compared to Rs 8.68 cr for period ended Jun 2020, a rise of 211.2%
Operating Profits reported at Rs 3.97 cr for period ended Jun 2021 vis-vis 0.93 for period ended Jun 2020 .
Operating Margins expanded 398.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.05 compared to Rs 6.58 for previous quarter ended Mar 2021 and Rs 2.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 120.0 cr for period ended TTM vis-vis sales of Rs 101.0 cr for the period ended Mar 2021, a healthy growth of 15.8%. The 3 year sales cagr stood at 20.3%.
Operating margins expanded to 11.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 15.0 cr for period ended TTM vis-vis sales of Rs 12.0 cr for the period ended Mar 2021, rising 20.0%.
Company recorded a healthy Net Profit CAGR of 95.7% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 34.0% compared to 36.0% over the last 3 Years. – The stock has given a return of 270% on a 1 Year basis vis-vis a return of 101% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is 54% vis-vis a compounded profit growth of 126% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 51.02% vis-vis 51.02% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 123.14% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.43%
-‘s median sales growth is 37.75% of last 10 years – Earnings include an other income of Rs.6.42 Cr.
– has high debtors of 187.71 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 below its 50 DMA 742.17 and is trading at 686.0. Shows a near term lack of buying interest.
