Mehabe score: 4 G Factor: 5 Piotski Score: 6 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 6.
Description
Tai Industries is engaged in trading , marketing and distribution and retailing, in India, of ‘DRUK’ brand of fruit products such as squashes, jam, fruit juices , pickles, ketchup, etc. The Company also carries on trading and marketing of industrial and mineral products and raw materials such as calcium carbide, charcoal, manganese ore, etc.Site:519483Main Symbol:TAIIND
Stock trades at 21.5, above its 50dma 18.89. It also trades above its 200dma 13.6. The stock remains bullish on techicals
The 52 week high is at 28.50 and the 52week low is at 6.61
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.73 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 20.27%
– has a low return on equity of 10.50% for last 3 years.
-Earnings include an other income of Rs.10.33 Cr.
Competition
– The industry trades at a mean P/E of 48.3x. 3M India trades at the industry’s max P/E of 187.55x. 519483 trades at a P/E of 4.89x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 519483 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Rain Industries: a return of 36.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 65.96 cr compared to Rs 30.69 cr for period ended Mar 2020, a rise of 114.9%
Company reported operating profit of Rs 0.35 cr for period ended Mar 2021, operating profit margin at 0.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 3.02 compared to Rs 0.1 for previous quarter ended Dec 2020 and Rs 0.12 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 186.0 cr for period ended Mar 2021 vis-vis sales of Rs 103.0 cr for the period ended Mar 2020, a healthy growth of 44.6%. The 3 year sales cagr stood at 36.0%.
Operating margins shrank to -4.0% for period ended Mar 2021 vis-vis -1.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 cr for the period ended Mar 2020, rising 0%.
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 211% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 80% vis-vis a compounded sales growth of 36% over the last 3 Years. – The compounded profit growth on a TTM basis is 725% vis-vis a compounded profit growth of 89% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 79.73% vis-vis 79.73% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.73 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 20.27%
– has a low return on equity of 10.50% for last 3 years.
-Earnings include an other income of Rs.10.33 Cr.
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 above its 50 DMA 18.89 and is trading at 21.5, thus bullish price action wise.
