Mehabe score: 1 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
Perfectpac is engaged interalia, in the business of manufacturing of Packaging products.Site:526435
Market Cap:
Rs 16.0 cr
Price:
121.0
Trading pe:
20.8x
Book-value:
213/share
Div yield:
0.00 %
Earning yield:
3.83%
Face-value:
10.0/share
52week high:
136.00
52week low:
100.60
Technical Analysis
Stock trades at 121.0, above its 50dma 120.55. However it is trading below its 200dma 130.1. The stock remains weak though short term bullish momentum supports price action. It needs to close above 130.1 for bullish price action to continue
The 52 week high is at 136.00 and the 52week low is at 100.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.57 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.45% over past five years.
– has a low return on equity of 8.07% for last 3 years.
-Debtor days have increased from 68.13 to 89.73 days.
Competition
– The industry trades at a mean P/E of 12.6x. EPL Ltd trades at the industry’s max P/E of 31.07x. 526435 trades at a P/E of 20.8x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 9.0. 526435 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Garware Polyest: a return of 23.93 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 65.9 cr for period ended Mar 2021 vis-vis sales of Rs 73.28 cr for the period ended Mar 2020, a fall of 11.2%. The 3 year sales cagr stood at -6.5%.
Operating margins shrank to 4.39% for period ended Mar 2021 vis-vis 7.31% for period ended Mar 2020, contraction of 292.0 bps.
Net Profit reported at Rs 0.77 cr for period ended Mar 2021 vis-vis sales of Rs 2.61 cr for the period ended Mar 2020, falling 239.0%.
Company reported a poor Net Profit CAGR of -33.1% 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 3.0% compared to 8.0% over the last 3 Years. – The stock has given a return of -6% 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 -10% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -71% 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 26.1% vis-vis 26.31% for Dec 2020
Conclusion
– Stock is trading at 0.57 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.45% over past five years.
– has a low return on equity of 8.07% for last 3 years.
-Debtor days have increased from 68.13 to 89.73 days.
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 120.55 and is trading at 121.0 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
