Mehabe score: 4 G Factor: 3 Piotski Score: 8 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 8.
Description
National Plastic Technologies Ltd is predominantly into manufacture of products to automotive industry and consumer durable industry and is already a major supplier of Injection Moulded Plastic Products.Site:531287
Market Cap:
Rs 28.5 cr
Price:
47.0
Trading pe:
27.4x
Book-value:
38.7/share
Div yield:
0.00 %
Earning yield:
8.26%
Face-value:
10.0/share
52week high:
49.90
52week low:
25.20
Technical Analysis
Stock trades at 47.0, above its 50dma 40.62. It also trades above its 200dma 35.71. The stock remains bullish on techicals
The 52 week high is at 49.90 and the 52week low is at 25.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 68.22 to 54.34 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.29% over past five years.
– has a low return on equity of 7.53% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.1x. Responsive Ind trades at the industry’s max P/E of 101.69x. 531287 trades at a P/E of 27.4x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 9.0. 531287 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 13.8%. The max 1- month return was given by Jai Corp: a return of 62.68 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 32.35 cr compared to Rs 17.69 cr for period ended Mar 2020, a rise of 82.9%
Operating Profits reported at Rs 2.87 cr for period ended Mar 2021 vis-vis 2.82 for period ended Mar 2020 .
Operating Margins contracted -706.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.74 compared to Rs 1.97 for previous quarter ended Dec 2020 and Rs 1.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 89.71 cr for period ended Mar 2021 vis-vis sales of Rs 87.66 cr for the period ended Mar 2020, a growth of 2.3%. The 3 year sales cagr stood at 11.2%.
Operating margins shrank to 7.88% for period ended Mar 2021 vis-vis 9.67% for period ended Mar 2020, contraction of 179.0 bps.
Net Profit reported at Rs 1.27 cr for period ended Mar 2021 vis-vis sales of Rs 2.32 cr for the period ended Mar 2020, falling 82.7%.
Company recorded a healthy Net Profit CAGR of 14.3% 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 10.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 55% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -17% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -50% vis-vis a compounded profit growth of 51% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 33.55% vis-vis 36.48% for Dec 2020
Conclusion
– Debtor days have improved from 68.22 to 54.34 days. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.29% over past five years.
– has a low return on equity of 7.53% for last 3 years.
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 40.62 and is trading at 47.0 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
