Mehabe score: 8 G Factor: 4 Piotski Score: 7 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 4 and Piotski score of 7.
Description
Indo Amines is engaged in the Business of manufacturing, selling and distribution of Specialty Chemical with diversified end-user into Agrochemicals, Pharmaceuticals, High performance Polymers, Paints, Pigments, Printing Inks, Rubber Chemicals etc.(Source : 201903 Annual Report Page No: 79)Site:524648Main Symbol:INDOAMIN
Stock trades at 241.0, above its 50dma 161.71. It also trades above its 200dma 111.57. The stock remains bullish on techicals
The 52 week high is at 236.70 and the 52week low is at 48.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 32.83% CAGR over last 5 years
Weakness
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -4.92%
Competition
– The industry trades at a mean P/E of 29.9x. Pidilite Inds. trades at the industry’s max P/E of 100.81x. 524648 trades at a P/E of 22.7x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. 524648 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 12.2%. The max 1- month return was given by Indo Amines: a return of 52.06 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 156.0 cr compared to Rs 121.0 cr for period ended Mar 2020, a rise of 28.9%
Operating Profits reported at Rs 13.0 cr for period ended Mar 2021 vis-vis 9.0 for period ended Mar 2020 .
Operating Margins expanded 89.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.53 compared to Rs 3.48 for previous quarter ended Dec 2020 and Rs 0.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 541.0 cr for period ended Mar 2021 vis-vis sales of Rs 479.0 cr for the period ended Mar 2020, a healthy growth of 11.5%. The 3 year sales cagr stood at 15.1%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 38.0 cr for period ended Mar 2021 vis-vis sales of Rs 13.0 cr for the period ended Mar 2020, rising 65.8%.
Company recorded a healthy Net Profit CAGR of 33.4% 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 56.0 cr for period ended Mar 2021 vis-vis Rs 39.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 25.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 264% on a 1 Year basis vis-vis a return of 46% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 194% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.66% vis-vis 30.66% for Dec 2020
Conclusion
– has delivered good profit growth of 32.83% CAGR over last 5 years – might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -4.92%
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 161.71 and is trading at 241.0, thus bullish price action wise.
