Mehabe score: 4 G Factor: 5 Piotski Score: 5 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 5.
Description
Ishan Dyes and Chemicals Ltd is engaged into the business of manufacturing copper phthalocyanine crude Blue (CPC Blue) and pigment blues. The products of the company are well established in the domestic and international markets.[1]Site:531109Main Symbol:ISHANCH
Stock trades at 121.0, above its 50dma 86.98. It also trades above its 200dma 66.81. The stock remains bullish on techicals
The 52 week high is at 105.80 and the 52week low is at 39.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 26.92% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 5.89% over past five years.
-Debtor days have increased from 90.66 to 118.72 days.
Competition
– The industry trades at a mean P/E of 23.7x. Atul trades at the industry’s max P/E of 45.1x. 531109 trades at a P/E of 13.6x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 531109 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 10.3%. The max 1- month return was given by Bodal Chemicals: a return of 30.17 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 18.01 cr compared to Rs 17.17 cr for period ended Sep 2020, a rise of 4.9%
Operating Profits reported at Rs 4.58 cr for period ended Sep 2021 vis-vis 4.03 for period ended Sep 2020 .
Operating Margins expanded 195.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 2.0 compared to Rs 1.94 for previous quarter ended Jun 2021 and Rs 1.88 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 91.0 cr for period ended TTM vis-vis sales of Rs 82.0 cr for the period ended Mar 2021, a growth of 9.9%. The 3 year sales cagr stood at 10.7%.
Net Profit reported at Rs 14.0 cr for period ended TTM vis-vis sales of Rs 13.0 cr for the period ended Mar 2021, rising 7.1%.
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 169% on a 1 Year basis vis-vis a return of 38% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of 61% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.48% vis-vis 41.48% for Mar 2021
Conclusion
– has delivered good profit growth of 26.92% CAGR over last 5 years – The company has delivered a poor sales growth of 5.89% over past five years.
-Debtor days have increased from 90.66 to 118.72 days.
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 86.98 and is trading at 121.0, thus bullish price action wise.
