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Our Rating: HOLD
Mehabe score: 4
G Factor: 5
Piotski Score: 7
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 7.
Description
Prakash Woollen & Synthetic Mills is engaged in the business of manufacturing of mink blankets.Site: 531437
Market Cap: | Rs 30.8 cr | Price: | 30.0 | Trading pe: | 8.16x |
Book-value: | 50.8/share | Div yield: | 0.00 % | Earning yield: | 16.45% |
Face-value: | 10.0/share | 52week high: | 35.10 | 52week low: | 17.25 |
Technical Analysis
- Stock trades at 30.0, above its 50dma 27.69. It also trades above its 200dma 24.34. The stock remains bullish on techicals
- The 52 week high is at 35.10 and the 52week low is at 17.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.59 times its book value
-Debtor days have improved from 27.41 to 20.99 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.94% over past five years.
– has a low return on equity of 9.02% for last 3 years.
Competition
– The industry trades at a mean P/E of 21.0x. Garware Tech. trades at the industry’s max P/E of 42.64x. 531437 trades at a P/E of 8.16x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. 531437 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 7.9%. The max 1- month return was given by PDS Multi.: a return of 29.16 %
Quarterly Results
- Sales for period ended Mar 2021 is Rs 18.68 cr compared to Rs 23.03 cr for period ended Mar 2020, a fall of 18.9%
- Operating Profits reported at Rs 1.25 cr for period ended Mar 2021 vis-vis 2.04 for period ended Mar 2020 .
- Operating Margins contracted -216.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
- The EPS for Mar 2021 was Rs 0.28 compared to Rs 3.15 for previous quarter ended Dec 2020 and Rs 0.31 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
- Company reported sales of Rs 97.55 cr for period ended Mar 2021 vis-vis sales of Rs 130.73 cr for the period ended Mar 2020, a fall of 34.0%. The 3 year sales cagr stood at -0.2%.
- Operating margins expanded to 9.74% for period ended Mar 2021 vis-vis 8.37% for period ended Mar 2020, expansion of 137.0 bps.
- Net Profit reported at Rs 3.77 cr for period ended Mar 2021 vis-vis sales of Rs 8.06 cr for the period ended Mar 2020, falling 113.8%.
- Company recorded a healthy Net Profit CAGR of 15.3% 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 8.0% compared to 9.0% over the last 3 Years.
– The stock has given a return of 52% on a 1 Year basis vis-vis a return of -22% over the last 3 Years.
– The compounded sales growth on a TTM bassis is -25% vis-vis a compounded sales growth of -0% over the last 3 Years.
– The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of 15% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.3% vis-vis 34.68% for Dec 2020
Conclusion
– Stock is trading at 0.59 times its book value
-Debtor days have improved from 27.41 to 20.99 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.94% over past five years.
– has a low return on equity of 9.02% 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 27.69 and is trading at 30.0, thus bullish price action wise.
- Thus, overall we retain a HOLD on the stock.
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