Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 6.
Description
Voith Paper Fabrics India is primarily involved in the business of manufacturing and selling of paper machine clothing for pulp, paper and board industry.Site:522122
Market Cap:
Rs 540 cr
Price:
1231.0
Trading pe:
21.0x
Book-value:
556/share
Div yield:
0.41 %
Earning yield:
8.62%
Face-value:
10.0/share
52week high:
1268.00
52week low:
925.20
Technical Analysis
Stock trades at 1231.0, above its 50dma 1113.43. It also trades above its 200dma 1068.59. The stock remains bullish on techicals
The 52 week high is at 1268.00 and the 52week low is at 925.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 2.82% over past five years.
– has a low return on equity of 10.84% for last 3 years.
-Dividend payout has been low at 13.42% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 22.6x. Garware Tech. trades at the industry’s max P/E of 38.67x. 522122 trades at a P/E of 21.0x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. 522122 has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 10.6%. The max 1- month return was given by PDS Multi.: a return of 35.59 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 31.12 cr compared to Rs 26.55 cr for period ended Mar 2020, a rise of 17.2%
Operating Profits reported at Rs 8.69 cr for period ended Mar 2021 vis-vis 6.8 for period ended Mar 2020 .
Operating Margins expanded 231.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 15.0 compared to Rs 18.19 for previous quarter ended Dec 2020 and Rs 11.97 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 119.0 cr for period ended Mar 2021 vis-vis sales of Rs 118.0 cr for the period ended Mar 2020, a growth of 0.8%. The 3 year sales cagr stood at 8.2%.
Operating margins expanded to 30.0% for period ended Mar 2021 vis-vis 27.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 27.0 cr for period ended Mar 2021 vis-vis sales of Rs 25.0 cr for the period ended Mar 2020, rising 7.4%.
Company recorded a healthy Net Profit CAGR of 14.5% 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 11.0% over the last 3 Years. – The stock has given a return of 23% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -2% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.77% vis-vis 24.77% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 2.82% over past five years.
– has a low return on equity of 10.84% for last 3 years.
-Dividend payout has been low at 13.42% of profits over last 3 years
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 1113.43 and is trading at 1231.0 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
