Mehabe score: 3 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
Radix Industries (India) is engaged in the business of Human hair product.Site:531412Main Symbol:RADIXIND
Stock trades at 39.9, above its 50dma 37.09. However it is trading below its 200dma 40.87. The stock remains weak though short term bullish momentum supports price action. It needs to close above 40.87 for bullish price action to continue
The 52 week high is at 77.20 and the 52week low is at 26.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 65.43%
-Debtor days have improved from 51.65 to 24.82 days.
Weakness
– Stock is trading at 3.43 times its book value
– has a low return on equity of 7.59% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 37.0x. Radix Industries trades at the industry’s max P/E of 36.96x. 531412 trades at a P/E of 37.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 4.0. 531412 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 24.1%. The max 1- month return was given by Radix Industries: a return of 24.11 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.8 cr compared to Rs 1.24 cr for period ended Jun 2020, a rise of 206.5%
Operating Profits reported at Rs 0.44 cr for period ended Jun 2021 vis-vis 0.12 for period ended Jun 2020 .
Operating Margins expanded 190.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.18 compared to Rs 0.25 for previous quarter ended Mar 2021 and Rs 0.03 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 30.07 cr for period ended TTM vis-vis sales of Rs 27.5 cr for the period ended Mar 2021, a growth of 8.5%. The 3 year sales cagr stood at 41.1%.
Operating margins expanded to 8.38% for period ended TTM vis-vis 8.0% for period ended Mar 2021, expansion of 38.0 bps.
Net Profit reported at Rs 1.62 cr for period ended TTM vis-vis sales of Rs 1.41 cr for the period ended Mar 2021, rising 13.0%.
Company recorded a Net Profit CAGR of 9.0% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 8.0% over the last 3 Years. – The stock has given a return of -36% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 220% vis-vis a compounded sales growth of 32% over the last 3 Years. – The compounded profit growth on a TTM basis is 76% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.04% vis-vis 25.04% for Mar 2021
Conclusion
– has been maintaining a healthy dividend payout of 65.43%
-Debtor days have improved from 51.65 to 24.82 days. – Stock is trading at 3.43 times its book value
– has a low return on equity of 7.59% for last 3 years.
– might be capitalizing the interest cost
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 37.09 and is trading at 39.9 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
