Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6. Site:530845
Market Cap:
Rs 246 cr
Price:
335.0
Trading pe:
17.4x
Book-value:
16.1/share
Div yield:
0.00 %
Earning yield:
6.97%
Face-value:
10.0/share
52week high:
314.90
52week low:
99.25
Technical Analysis
Stock trades at 335.0, above its 50dma 269.0. It also trades above its 200dma 218.67. The stock remains bullish on techicals
The 52 week high is at 314.90 and the 52week low is at 99.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 77.08% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 50.20%
Weakness
– Stock is trading at 20.86 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 5.75% over past five years.
-Tax rate seems low
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 29.4x. Pidilite Inds. trades at the industry’s max P/E of 97.44x. 530845 trades at a P/E of 17.4x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 530845 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 8.6%. The max 1- month return was given by Sunshield Chem.: a return of 22.94 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 51.7 cr compared to Rs 44.79 cr for period ended Mar 2020, a rise of 15.4%
Operating Profits reported at Rs 7.38 cr for period ended Mar 2021 vis-vis 5.12 for period ended Mar 2020 .
Operating Margins expanded 284.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.49 compared to Rs 5.36 for previous quarter ended Dec 2020 and Rs 1.16 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 199.0 cr for period ended Mar 2021 vis-vis sales of Rs 181.0 cr for the period ended Mar 2020, a growth of 9.0%. The 3 year sales cagr stood at 2.8%.
Operating margins expanded to 15.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 600.0 bps.
Net Profit reported at Rs 14.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 92.9%.
Company recorded a healthy Net Profit CAGR of 141.0% 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 120.0% compared to 50.0% over the last 3 Years. – The stock has given a return of 233% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 1082% vis-vis a compounded profit growth of 128% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 37.63% vis-vis 37.63% for Dec 2020
Conclusion
– has delivered good profit growth of 77.08% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 50.20% – Stock is trading at 20.86 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 5.75% over past five years.
-Tax rate seems low
– might be capitalizing the interest cost
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 269.0 and is trading at 335.0, thus bullish price action wise.
