Mehabe score: 4 G Factor: 3 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 3 and Piotski score of 6.
Description
Machino Plastics is Indias first and largest plastic bumper and dashboard manufacturer company. The company has its own state-of-art plastic moulding product development division. The company is providing turnkey solutions through an integrated approach of designing, tooling, manufacturing and assembling most complex products. The company is a joint venture of Maruti Suzuki India Ltd and Suzuki Motor Corporation, Japan for the manufacture of injection moulded automotive i.e. bumpers, instrument panels, grills etc as original equipment and for spare parts market primarily for Maruti Suzuki India Limited. The company also manufactures various automotive components for others manufacturers. The company has also started manufacturing of moulds for in house requirements & others.Site:523248Main Symbol:MACPLASQ
Stock trades at 131.0, above its 50dma 128.59. It also trades above its 200dma 102.34. The stock remains bullish on techicals
The 52 week high is at 164.00 and the 52week low is at 53.50
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.54% over past five years.
– has a low return on equity of -4.99% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 47.63 to 59.20 days.
Competition
– The industry trades at a mean P/E of 28.8x. Astral trades at the industry’s max P/E of 111.38x. 523248 trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. 523248 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 0.1%. The max 1- month return was given by Nilkamal Ltd: a return of 29.02 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 48.3 cr compared to Rs 13.27 cr for period ended Jun 2020, a rise of 264.0%
Company reported operating profit of Rs 2.73 cr for period ended Jun 2021, operating profit margin at 5.7 %.
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 -3.99 compared to Rs 4.37 for previous quarter ended Mar 2021 and Rs -12.91 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 245.0 cr for period ended TTM vis-vis sales of Rs 210.0 cr for the period ended Mar 2021, a healthy growth of 14.3%. The 3 year sales cagr stood at -6.8%.
Operating margins expanded to 9.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 1.0 cr for period ended TTM vis-vis sales of Rs -4.0 cr for the period ended Mar 2021, 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 stock has given a return of 124% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.38% vis-vis 26.38% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.54% over past five years.
– has a low return on equity of -4.99% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 47.63 to 59.20 days.
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 128.59 and is trading at 131.0 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
