Mehabe score: 3 G Factor: 3 Piotski Score: 6 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 6.
Description
Multibase India is engaged in the business of manufacturing, trading and selling of polypropylene compound, thermoplastic elastomer, silicon master batch and thermoplastic master batch.Site:526169
Market Cap:
Rs 311 cr
Price:
246.0
Trading pe:
46.3x
Book-value:
90.0/share
Div yield:
0.00 %
Earning yield:
3.89%
Face-value:
10.0/share
52week high:
269.95
52week low:
116.20
Technical Analysis
Stock trades at 246.0, above its 50dma 209.49. It also trades above its 200dma 183.87. The stock remains bullish on techicals
The 52 week high is at 269.95 and the 52week low is at 116.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.61% over past five years.
-Earnings include an other income of Rs.3.85 Cr.
Competition
– The industry trades at a mean P/E of 24.9x. Astral trades at the industry’s max P/E of 98.34x. 526169 trades at a P/E of 46.3x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 9.0. 526169 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 7.1%. The max 1- month return was given by Jai Corp: a return of 39.13 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 17.22 cr compared to Rs 13.59 cr for period ended Mar 2020, a rise of 26.7%
Operating Profits reported at Rs 2.66 cr for period ended Mar 2021 vis-vis 1.78 for period ended Mar 2020 .
Operating Margins expanded 234.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.63 compared to Rs 2.41 for previous quarter ended Dec 2020 and Rs 1.63 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 53.45 cr for period ended Mar 2021 vis-vis sales of Rs 59.78 cr for the period ended Mar 2020, a fall of 11.8%. The 3 year sales cagr stood at -21.0%.
Operating margins expanded to 12.61% for period ended Mar 2021 vis-vis 10.97% for period ended Mar 2020, expansion of 164.0 bps.
Net Profit reported at Rs 6.72 cr for period ended Mar 2021 vis-vis sales of Rs 7.54 cr for the period ended Mar 2020, falling 12.2%.
Company reported a poor Net Profit CAGR of -30.0% 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 7.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 65% on a 1 Year basis vis-vis a return of -25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -27% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -29% vis-vis a compounded profit growth of -17% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.03% vis-vis 1.03% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 23.97% vis-vis 23.97% for Dec 2020
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.61% over past five years.
-Earnings include an other income of Rs.3.85 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 209.49 and is trading at 246.0 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
