Mehabe score: 6 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
APM Industries is engaged in the manufacturing and selling of Man Made Fibres Spun Yarn and Sewing Thread Business.Site:523537Main Symbol:APMIN
Stock trades at 38.4, above its 50dma 32.67. It also trades above its 200dma 25.53. The stock remains bullish on techicals
The 52 week high is at 44.00 and the 52week low is at 12.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.61 times its book value
-Debtor days have improved from 31.41 to 23.30 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.32% over past five years.
– has a low return on equity of 4.65% for last 3 years.
Competition
– The industry trades at a mean P/E of 12.3x. Banswara Syntex trades at the industry’s max P/E of 33.25x. 523537 trades at a P/E of 8.25x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 8.0. 523537 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 45.0%. The max 1- month return was given by Sportking India: a return of 122.2 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 48.08 cr compared to Rs 25.65 cr for period ended Jun 2020, a rise of 87.4%
Company reported operating profit of Rs 7.26 cr for period ended Jun 2021, operating profit margin at 15.1 %.
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 1.22 compared to Rs 1.27 for previous quarter ended Mar 2021 and Rs -1.22 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 259.0 cr for period ended TTM vis-vis sales of Rs 237.0 cr for the period ended Mar 2021, a growth of 8.5%. The 3 year sales cagr stood at -1.4%.
Operating margins expanded to 9.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs 5.0 cr for the period ended Mar 2021, rising 50.0%.
Company recorded a healthy Net Profit CAGR of 12.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 28.0 cr for period ended Mar 2021 vis-vis Rs 21.0 cr for period ended Mar 2020
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 5.0% over the last 3 Years. – The stock has given a return of 169% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 446% vis-vis a compounded profit growth of -28% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.46% vis-vis 36.46% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.61 times its book value
-Debtor days have improved from 31.41 to 23.30 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.32% over past five years.
– has a low return on equity of 4.65% for last 3 years.
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 32.67 and is trading at 38.4, thus bullish price action wise.
