Mehabe score: 3 G Factor: 3 Piotski Score: 2 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 2.
Description
Union Quality Plastics is engaged in Business of Tarpaulin – (Manufacturing of Packaging Product of Plastics)Site:526799Main Symbol:UNQTYMI
Stock trades at 20.9, above its 50dma 15.72. It also trades above its 200dma 17.77. The stock remains bullish on techicals
The 52 week high is at 22.00 and the 52week low is at 8.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -1.39%
-The company has delivered a poor sales growth of -18.79% over past five years.
– might be capitalizing the interest cost
– has high debtors of 255.87 days.
Competition
– The industry trades at a mean P/E of 28.3x. Astral trades at the industry’s max P/E of 100.9x. 526799 trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. 526799 has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 10.5%. The max 1- month return was given by Union Qual. Pla.: a return of 50.58 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.56 cr compared to Rs 12.44 cr for period ended Mar 2020, a fall of 87.5%
Company reported negative operating profit of Rs -0.72 cr for period ended Mar 2021. For same period last year, operating profit was 1.97
The EPS for Mar 2021 was Rs -1.07 compared to Rs 0.53 for previous quarter ended Dec 2020 and Rs 1.65 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.59 cr for period ended Mar 2021 vis-vis sales of Rs 36.34 cr for the period ended Mar 2020, a fall of 119.0%. The 3 year sales cagr stood at -11.6%.
Net Profit reported at Rs -0.24 cr for period ended Mar 2021 vis-vis sales of Rs 0.64 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -1.54 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -11.0% compared to 0% over the last 3 Years. – The stock has given a return of 161% on a 1 Year basis vis-vis a return of -19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -54% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -138% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.13% vis-vis 34.74% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -1.39%
-The company has delivered a poor sales growth of -18.79% over past five years.
– might be capitalizing the interest cost
– has high debtors of 255.87 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 15.72 and is trading at 20.9 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
