Mehabe score: 5 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
Sukhjit Starch & Chemicals is an Agro-Processing Industry manufacturing starch & its derivatives i.e Liquid Glucose, Dextrose Monohydrate, Dextrose Anhydrous, Sorbitol, Modified Starches and by-products.Site:524542Main Symbol:SUKHJITS
Stock trades at 265.0, above its 50dma 237.01. It also trades above its 200dma 206.46. The stock remains bullish on techicals
The 52 week high is at 289.00 and the 52week low is at 152.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.18 times its book value
– has been maintaining a healthy dividend payout of 18.90%
Weakness
– The company has delivered a poor sales growth of 4.34% over past five years.
– has a low return on equity of 10.14% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 26.1x. Jubilant Ingrevia trades at the industry’s max P/E of 141.5x. 524542 trades at a P/E of 18.7x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 9.0. 524542 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 3.6%. The max 1- month return was given by Sukhjit Starch: a return of 15.27 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 233.82 cr compared to Rs 179.25 cr for period ended Mar 2020, a rise of 30.4%
Operating Profits reported at Rs 24.01 cr for period ended Mar 2021 vis-vis 13.12 for period ended Mar 2020 .
Operating Margins expanded 294.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.02 compared to Rs 7.01 for previous quarter ended Dec 2020 and Rs 3.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 699.0 cr for period ended Mar 2021 vis-vis sales of Rs 799.0 cr for the period ended Mar 2020, a fall of 14.3%. The 3 year sales cagr stood at -0.1%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 7.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 21.0 cr for period ended Mar 2021 vis-vis sales of Rs 33.0 cr for the period ended Mar 2020, falling 57.1%.
Company reported a poor Net Profit CAGR of -3.0% 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 116.0 cr for period ended Mar 2021 vis-vis Rs -61.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -26% vis-vis a compounded profit growth of 0% 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 35.99% vis-vis 36.24% for Dec 2020
Conclusion
– Stock is trading at 1.18 times its book value
– has been maintaining a healthy dividend payout of 18.90% – The company has delivered a poor sales growth of 4.34% over past five years.
– has a low return on equity of 10.14% for last 3 years.
– might be capitalizing the interest cost
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 237.01 and is trading at 265.0, thus bullish price action wise.
