Home Investment Memo: 530309

Investment Memo: 530309

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Our Rating:

Mehabe score: 8
G Factor: 8
Piotski Score: 7
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 8 and Piotski score of 7.

Description

Incorporated in 1984, Chandra Prabhu International deals in the trading of Coal, Agriculture Food products, Synthetic Rubber, Fertilizers, and Petroleum Products, etc. The company has its corporate office in New Delhi and branch offices namely Mughal Sarai, Guwahati, Bhatinda, & SiliguriSite: 530309Main Symbol: CHANDRAP

Price Chart

Market Cap: Rs 69.6 cr Price: 188.0 Trading pe: 5.03x
Book-value: 52.0/share Div yield: 0.53 % Earning yield: 33.90%
Face-value: 10.0/share 52week high: 178.95 52week low: 15.10

Technical Analysis

  • Stock trades at 188.0, above its 50dma 138.24. It also trades above its 200dma 80.42. The stock remains bullish on techicals
  • The 52 week high is at 178.95 and the 52week low is at 15.10

Price Chart

P/E Chart

Sales and Margin

Strengths

– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 136.03% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 28.45%
-Debtor days have improved from 49.06 to 34.85 days.

Weakness

Competition

– The industry trades at a mean P/E of 46.4x. Adani Enterp. trades at the industry’s max P/E of 139.0x. 530309 trades at a P/E of 5.03x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 530309 has a G-Factor of 8 and Piotski scoreof 7.
– Average 1 month return for industry is 9.0%. The max 1- month return was given by PTC India: a return of 34.95 %

Quarterly Results

  • Sales for period ended Sep 2021 is Rs 118.97 cr compared to Rs 35.56 cr for period ended Sep 2020, a rise of 234.6%
  • Operating Profits reported at Rs 5.35 cr for period ended Sep 2021 vis-vis 1.39 for period ended Sep 2020 .
  • Operating Margins expanded 58.8 bps for period ended Sep 2021 vis-vis Sep 2020 .
  • The EPS for Sep 2021 was Rs 10.38 compared to Rs 19.69 for previous quarter ended Jun 2021 and Rs 2.76 for Sep 2020

Profit & Loss Statement

Profit&Loss Comments

  • Company reported sales of Rs 451.0 cr for period ended TTM vis-vis sales of Rs 226.0 cr for the period ended Mar 2021, a healthy growth of 49.9%. The 3 year sales cagr stood at 71.1%.
  • Operating margins expanded to 5.0% for period ended TTM vis-vis 4.0% for period ended Mar 2021, expansion of 100.0 bps.
  • Net Profit reported at Rs 17.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 64.7%.
  • Company recorded a healthy Net Profit CAGR of 78.3% over the last 3 years

Balance Sheet Statement

Cash Flow Statement

Cash Flow comments

  • CashFlow from operating activities was positive.
  • CashFlow from operating activities: Rs 6.0 cr for period ended Mar 2021 vis-vis Rs 4.0 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 35.0% compared to 28.0% over the last 3 Years.
– The stock has given a return of 1133% on a 1 Year basis vis-vis a return of 118% over the last 3 Years.
– The compounded sales growth on a TTM bassis is 187% vis-vis a compounded sales growth of 56% over the last 3 Years.
– The compounded profit growth on a TTM basis is 1934% vis-vis a compounded profit growth of 50% over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 36.82% vis-vis 36.82% for Jun 2021

Conclusion

– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 136.03% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 28.45%
-Debtor days have improved from 49.06 to 34.85 days. –

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