Mehabe score: 4 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
Vinyoflex is engaged in PVC Sheeting (Vinyl Films).Site:530401Main Symbol:VINYOFL
Stock trades at 29.6, above its 50dma 28.7. It also trades above its 200dma 27.03. The stock remains bullish on techicals
The 52 week high is at 37.65 and the 52week low is at 18.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.61 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 3.78% over past five years.
– has a low return on equity of 10.91% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 185.55 days.
Competition
– The industry trades at a mean P/E of 29.5x. Astral trades at the industry’s max P/E of 100.84x. 530401 trades at a P/E of 7.76x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. 530401 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Nilkamal Ltd: a return of 14.18 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 5.45 cr compared to Rs 2.19 cr for period ended Jun 2020, a rise of 148.9%
Operating Profits reported at Rs 0.2 cr for period ended Jun 2021 vis-vis 0.19 for period ended Jun 2020 .
Operating Margins contracted -500.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.07 compared to Rs 0.49 for previous quarter ended Mar 2021 and Rs -0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 38.0 cr for period ended TTM vis-vis sales of Rs 34.74 cr for the period ended Mar 2021, a growth of 8.6%. The 3 year sales cagr stood at -0.9%.
Operating margins shrank to 6.79% for period ended TTM vis-vis 7.46% for period ended Mar 2021, contraction of 67.0 bps.
Net Profit reported at Rs 1.69 cr for period ended TTM vis-vis sales of Rs 1.65 cr for the period ended Mar 2021, rising 2.4%.
Company reported a poor Net Profit CAGR of -1.5% 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 2.73 cr for period ended Mar 2021 vis-vis Rs -0.76 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 47% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -34% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 48.81% vis-vis 48.81% for Mar 2021
Conclusion
– Stock is trading at 0.61 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 3.78% over past five years.
– has a low return on equity of 10.91% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 185.55 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 28.7 and is trading at 29.6 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
