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
Camex is engaged in business of manufacturing, trading, Import and Export of Dyes, Chemicals, and Intermediates related Products.Site:524440
Market Cap:
Rs 34.0 cr
Price:
33.4
Trading pe:
25.0x
Book-value:
33.2/share
Div yield:
0.00 %
Earning yield:
5.25%
Face-value:
10.0/share
52week high:
38.95
52week low:
12.65
Technical Analysis
Stock trades at 33.4, above its 50dma 27.15. It also trades above its 200dma 20.98. The stock remains bullish on techicals
The 52 week high is at 38.95 and the 52week low is at 12.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.00 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.78% over past five years.
– has a low return on equity of 6.69% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 23.1x. Atul trades at the industry’s max P/E of 38.82x. 524440 trades at a P/E of 25.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 524440 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 10.3%. The max 1- month return was given by Kiri Industries: a return of 36.59 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 150.0 cr for period ended Mar 2021 vis-vis sales of Rs 132.0 cr for the period ended Mar 2020, a healthy growth of 12.0%. The 3 year sales cagr stood at 5.2%.
Operating margins shrank to 2.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020,
Company reported a poor Net Profit CAGR of -20.6% 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 stock has given a return of 147% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 9% vis-vis a compounded profit growth of -15% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.34% vis-vis 29.34% for Dec 2020
Conclusion
– Stock is trading at 1.00 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.78% over past five years.
– has a low return on equity of 6.69% for last 3 years.
– might be capitalizing the interest cost
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 27.15 and is trading at 33.4 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
