Mehabe score: 6 G Factor: 3 Piotski Score: 7 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 7.
Description
Vipul Organics is principle activities are manufacturing & trading of Dyes stuff, Organic Pigments & Organic Intermediates.
Main Points
Dyes-intermediates are mainly for captive consumption, if surplus, the export requirement is fulfilled.Site:530627
Market Cap:
Rs 186 cr
Price:
194.0
Trading pe:
27.1x
Book-value:
33.4/share
Div yield:
0.41 %
Earning yield:
4.75%
Face-value:
10.0/share
52week high:
204.85
52week low:
84.95
Technical Analysis
Stock trades at 194.0, above its 50dma 171.3. It also trades above its 200dma 143.98. The stock remains bullish on techicals
The 52 week high is at 204.85 and the 52week low is at 84.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 49.74% CAGR over last 5 years
Weakness
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 24.5x. Atul trades at the industry’s max P/E of 40.92x. 530627 trades at a P/E of 27.1x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 530627 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 12.6%. The max 1- month return was given by Bhageria Indust.: a return of 37.71 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 37.34 cr compared to Rs 21.18 cr for period ended Mar 2020, a rise of 76.3%
Operating Profits reported at Rs 4.45 cr for period ended Mar 2021 vis-vis 1.93 for period ended Mar 2020 .
Operating Margins expanded 280.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.76 compared to Rs 2.24 for previous quarter ended Dec 2020 and Rs 0.5 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 119.0 cr for period ended Mar 2021 vis-vis sales of Rs 92.0 cr for the period ended Mar 2020, a healthy growth of 22.7%. The 3 year sales cagr stood at 14.6%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 10.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 7.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020, rising 28.6%.
Company recorded a healthy Net Profit CAGR of 51.8% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 49% vis-vis a compounded profit growth of 45% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.26% vis-vis 36.52% for Dec 2020
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 49.74% CAGR over last 5 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 171.3 and is trading at 194.0 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
