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.
Description
Alfa Ica (India) is engaged in the business of Decorative laminates.Site:530973Main Symbol:ALFAICA
Stock trades at 49.0, above its 50dma 35.49. It also trades above its 200dma 29.38. The stock remains bullish on techicals
The 52 week high is at 53.85 and the 52week low is at 19.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.17 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 1.98% over past five years.
– has a low return on equity of 8.46% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.3x. Jubilant Ingrevia trades at the industry’s max P/E of 153.95x. 530973 trades at a P/E of 13.9x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 530973 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 13.6%. The max 1- month return was given by Alfa Ica (I): a return of 46.61 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 15.3 cr compared to Rs 8.56 cr for period ended Jun 2020, a rise of 78.7%
Operating Profits reported at Rs 0.85 cr for period ended Jun 2021 vis-vis 0.8 for period ended Jun 2020 .
Operating Margins contracted -379.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.64 compared to Rs 1.36 for previous quarter ended Mar 2021 and Rs 0.52 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 61.91 cr for period ended TTM vis-vis sales of Rs 55.17 cr for the period ended Mar 2021, a healthy growth of 10.9%. The 3 year sales cagr stood at 3.4%.
Operating margins shrank to 5.35% for period ended TTM vis-vis 5.91% for period ended Mar 2021, contraction of 56.0 bps.
Net Profit reported at Rs 1.47 cr for period ended TTM vis-vis sales of Rs 1.42 cr for the period ended Mar 2021, rising 3.4%.
Company recorded a Net Profit CAGR of 5.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 28.83% vis-vis 28.83% for Mar 2021
Conclusion
– Stock is trading at 1.17 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 1.98% over past five years.
– has a low return on equity of 8.46% for last 3 years.
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 35.49 and is trading at 49.0, thus bullish price action wise.
