Mehabe score: 2 G Factor: 3 Piotski Score: 1 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 1.
Description
Hipolin is engaged in manufacturing of Detergent Powder & Cake and alike products.Site:530853Main Symbol:HIPOLIN
Stock trades at 54.2, above its 50dma 42.5. It also trades above its 200dma 35.67. The stock remains bullish on techicals
The 52 week high is at 57.55 and the 52week low is at 20.55
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 3.00 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.28% over past five years.
– has a low return on equity of -7.67% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 44.73 to 66.63 days.
Competition
– The industry trades at a mean P/E of 22.5x. Galaxy Surfact. trades at the industry’s max P/E of 37.28x. 530853 trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. 530853 has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is -11.1%. The max 1- month return was given by Pee Cee Cosma: a return of -4.93 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 2.58 cr compared to Rs 2.43 cr for period ended Sep 2020, a rise of 6.2%
Company reported negative operating profit of Rs -0.29 cr for period ended Sep 2021. For same period last year, operating profit was -0.25
The EPS for Sep 2021 was Rs -0.8 compared to Rs -0.7 for previous quarter ended Jun 2021 and Rs -0.8 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11.54 cr for period ended TTM vis-vis sales of Rs 11.12 cr for the period ended Mar 2021, a growth of 3.6%. The 3 year sales cagr stood at -11.4%.
Operating margins shrank to -7.02% for period ended TTM vis-vis -5.04% for period ended Mar 2021, contraction of 198.0 bps.
Net Profit reported at Rs -0.76 cr for period ended TTM vis-vis sales of Rs -0.52 cr for the period ended Mar 2021, falling 0%.
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 stock has given a return of 57% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -522% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 31.77% vis-vis 31.77% for Jun 2021
Conclusion
– – Stock is trading at 3.00 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.28% over past five years.
– has a low return on equity of -7.67% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 44.73 to 66.63 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 42.5 and is trading at 54.2 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
