Mehabe score: 6 G Factor: 5 Piotski Score: 9 The stock has a rating . 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 5 and Piotski score of 9.
Description
Udaipur Cement Works Limited (UCWL), incorporated on 15th March 1993, has its registered office at Jaipur, Rajasthan. The company presently is a subsidiary of Indian Cement Manufacturing Company, JK Lakshmi Cement Limited, which is part of reputed business conglomerate JK Organisation (JKO) that has rich business legacy of more than 135 years. UCWL manufactures cement under the brand name-Platinum Heavy Duty Cement.
Main Points
Products
UCWL has products in the cement category. They sell with the brand name ‘Platinum Heavy Duty Cement’.#Site:530131Main Symbol:UDAICEMENT
Stock trades at 36.9, above its 50dma 29.56. It also trades above its 200dma 22.83. The stock remains bullish on techicals
The 52 week high is at 39.90 and the 52week low is at 9.97
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 62.88% CAGR over last 5 years
Weakness
– Stock is trading at 4.66 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 5.93% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.0x. Shree Cement trades at the industry’s max P/E of 44.35x. 530131 trades at a P/E of 18.6x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 9.0. 530131 has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is 12.1%. The max 1- month return was given by Udaipur Cement: a return of 25.51 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 219.0 cr compared to Rs 159.0 cr for period ended Mar 2020, a rise of 37.7%
Operating Profits reported at Rs 45.0 cr for period ended Mar 2021 vis-vis 33.0 for period ended Mar 2020 .
Operating Margins contracted -20.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.71 compared to Rs 0.5 for previous quarter ended Dec 2020 and Rs -0.08 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 735.0 cr for period ended Mar 2021 vis-vis sales of Rs 686.0 cr for the period ended Mar 2020, a growth of 6.7%. The 3 year sales cagr stood at 25.0%.
Operating margins expanded to 20.0% for period ended Mar 2021 vis-vis 18.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 55.0 cr for period ended Mar 2021 vis-vis sales of Rs 16.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 187.0 cr for period ended Mar 2021 vis-vis Rs 133.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 266% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 25% over the last 3 Years. – The compounded profit growth on a TTM basis is 301% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.1% vis-vis 0.1% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.01% vis-vis 27.0% for Dec 2020
Conclusion
– has delivered good profit growth of 62.88% CAGR over last 5 years – Stock is trading at 4.66 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 5.93% for last 3 years.
