Mehabe score: 3 G Factor: 2 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 2 and Piotski score of 6.
Description
National Plastic Industries is engaged in the business of Injection Moulded Products and Services (Renting out of leased in non residential building).Site:526616
Market Cap:
Rs 29.4 cr
Price:
32.2
Trading pe:
46.6x
Book-value:
30.0/share
Div yield:
0.00 %
Earning yield:
4.11%
Face-value:
10.0/share
52week high:
35.80
52week low:
16.50
Technical Analysis
Stock trades at 32.2, above its 50dma 28.77. It also trades above its 200dma 24.51. The stock remains bullish on techicals
The 52 week high is at 35.80 and the 52week low is at 16.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.07 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.45% over past five years.
– has a low return on equity of 9.08% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 25.6x. Responsive Ind trades at the industry’s max P/E of 185.26x. 526616 trades at a P/E of 46.6x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. 526616 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 15.6%. The max 1- month return was given by Jai Corp: a return of 46.07 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 30.56 cr compared to Rs 33.08 cr for period ended Mar 2020, a fall of 7.6%
Company reported operating profit of Rs 1.14 cr for period ended Mar 2021, operating profit margin at 3.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 2.0 compared to Rs 2.21 for previous quarter ended Dec 2020 and Rs 0.1 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 76.45 cr for period ended Mar 2021 vis-vis sales of Rs 114.19 cr for the period ended Mar 2020, a fall of 49.4%. The 3 year sales cagr stood at -9.6%.
Operating margins expanded to 7.18% for period ended Mar 2021 vis-vis 5.11% for period ended Mar 2020, expansion of 207.0 bps.
Net Profit reported at Rs 2.38 cr for period ended Mar 2021 vis-vis sales of Rs 2.11 cr for the period ended Mar 2020, rising 11.3%.
Company reported a poor Net Profit CAGR of -9.9% 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 5.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 60% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -34% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is -73% vis-vis a compounded profit growth of 321% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 43.34% vis-vis 42.15% for Dec 2020
Conclusion
– Stock is trading at 1.07 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.45% over past five years.
– has a low return on equity of 9.08% for last 3 years.
– might be capitalizing the interest cost
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 28.77 and is trading at 32.2 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
