Mehabe score: 3 G Factor: 3 Piotski Score: 5 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 5.
Description
Indian Toners & Developers is in the business of manufacturing of Toners only.Site:523586
Market Cap:
Rs 212 cr
Price:
196.0
Trading pe:
16.6x
Book-value:
173/share
Div yield:
1.53 %
Earning yield:
8.95%
Face-value:
10.0/share
52week high:
220.00
52week low:
73.55
Technical Analysis
Stock trades at 196.0, above its 50dma 173.43. It also trades above its 200dma 138.69. The stock remains bullish on techicals
The 52 week high is at 220.00 and the 52week low is at 73.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.13 times its book value
– has been maintaining a healthy dividend payout of 23.16%
Weakness
– The company has delivered a poor sales growth of -0.07% over past five years.
– has a low return on equity of 10.97% for last 3 years.
-Earnings include an other income of Rs.8.55 Cr.
Competition
– The industry trades at a mean P/E of 25.7x. Atul trades at the industry’s max P/E of 39.93x. 523586 trades at a P/E of 16.6x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 523586 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 8.7%. The max 1- month return was given by Kiri Industries: a return of 35.83 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 30.02 cr compared to Rs 20.8 cr for period ended Mar 2020, a rise of 44.3%
Operating Profits reported at Rs 5.9 cr for period ended Mar 2021 vis-vis 2.56 for period ended Mar 2020 .
Operating Margins expanded 734.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.02 compared to Rs 3.34 for previous quarter ended Dec 2020 and Rs 2.15 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 89.0 cr for period ended Mar 2021 vis-vis sales of Rs 92.0 cr for the period ended Mar 2020, a fall of 3.4%. The 3 year sales cagr stood at -7.4%.
Operating margins expanded to 17.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 13.0 cr for period ended Mar 2021 vis-vis sales of Rs 12.0 cr for the period ended Mar 2020, rising 7.7%.
Company reported a poor Net Profit CAGR of -18.5% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -5% vis-vis a compounded profit growth of -17% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.72% vis-vis 30.72% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.13 times its book value
– has been maintaining a healthy dividend payout of 23.16% – The company has delivered a poor sales growth of -0.07% over past five years.
– has a low return on equity of 10.97% for last 3 years.
-Earnings include an other income of Rs.8.55 Cr.
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 173.43 and is trading at 196.0 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
