Mehabe score: 4 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
Incap Limited is manufactures and sells electrolytic capacitors in India and internationally.Site:517370Main Symbol:INCAP
Stock trades at 30.7, above its 50dma 24.02. It also trades above its 200dma 24.03. The stock remains bullish on techicals
The 52 week high is at 35.35 and the 52week low is at 17.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.02 times its book value
Weakness
– The company has delivered a poor sales growth of -7.00% over past five years.
– has a low return on equity of 4.36% for last 3 years.
-Earnings include an other income of Rs.1.22 Cr.
-Debtor days have increased from 99.29 to 141.57 days.
-Promoter holding has decreased over last 3 years: -6.89%
Competition
– The industry trades at a mean P/E of 39.4x. Amber Enterp. trades at the industry’s max P/E of 123.55x. 517370 trades at a P/E of 27.2x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 517370 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 18.7%. The max 1- month return was given by Cosmo Ferrites: a return of 100.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 4.4 cr compared to Rs 5.45 cr for period ended Jun 2020, a fall of 19.3%
Company reported operating profit of Rs 0.22 cr for period ended Jun 2021, operating profit margin at 5.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.19 compared to Rs 0.41 for previous quarter ended Mar 2021 and Rs 0.04 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 25.3 cr for period ended TTM vis-vis sales of Rs 20.91 cr for the period ended Mar 2021, a healthy growth of 17.4%. The 3 year sales cagr stood at 7.1%.
Operating margins expanded to 1.15% for period ended TTM vis-vis 0.33% for period ended Mar 2021, expansion of 82.0 bps.
Net Profit reported at Rs 0.78 cr for period ended TTM vis-vis sales of Rs 0.58 cr for the period ended Mar 2021, rising 25.6%.
Company reported a poor Net Profit CAGR of -7.0% 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 8% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -45% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is 32% vis-vis a compounded profit growth of -41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 33.59% vis-vis 33.68% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 1.02 times its book value – The company has delivered a poor sales growth of -7.00% over past five years.
– has a low return on equity of 4.36% for last 3 years.
-Earnings include an other income of Rs.1.22 Cr.
-Debtor days have increased from 99.29 to 141.57 days.
-Promoter holding has decreased over last 3 years: -6.89%
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 24.02 and is trading at 30.7 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
