Mehabe score: 2 G Factor: 4 Piotski Score: 5 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 5.
Description
Kkalpana lndustries (India) is engaged in the manufacturing of Plastic Compounds.Site:526409Main Symbol:KKALPANAIND
Stock trades at 45.4, below its 50dma 46.36. However it is trading above its 200dma 35.99. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 46.36.
The 52 week high is at 63.00 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.16 times its book value
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -3.56% over past five years.
– has a low return on equity of 8.14% for last 3 years.
-Dividend payout has been low at 6.77% of profits over last 3 years
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 24.6x. Responsive Ind trades at the industry’s max P/E of 108.98x. 526409 trades at a P/E of 12.4x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 526409 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Finolex Inds.: a return of 16.33 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 512.0 cr compared to Rs 229.0 cr for period ended Jun 2020, a rise of 123.6%
Operating Profits reported at Rs 22.0 cr for period ended Jun 2021 vis-vis 9.0 for period ended Jun 2020 .
Operating Margins expanded 36.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.13 compared to Rs 1.32 for previous quarter ended Mar 2021 and Rs 0.01 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1833.0 cr for period ended TTM vis-vis sales of Rs 1550.0 cr for the period ended Mar 2021, a healthy growth of 15.4%. The 3 year sales cagr stood at -2.6%.
Net Profit reported at Rs 34.0 cr for period ended TTM vis-vis sales of Rs 24.0 cr for the period ended Mar 2021, rising 29.4%.
Company recorded a Net Profit CAGR of 9.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 145% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.16% vis-vis 25.16% for Jun 2021
Conclusion
– Stock is trading at 1.16 times its book value
– is expected to give good quarter – The company has delivered a poor sales growth of -3.56% over past five years.
– has a low return on equity of 8.14% for last 3 years.
-Dividend payout has been low at 6.77% of profits over last 3 years
-‘s cost of borrowing seems high
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 below its 50 DMA 46.36 and is trading at 45.4. Shows a near term lack of buying interest.
