Mehabe score: 7 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
KG Petrochem is engaged in the business of manufacutuing and services as Manufactuiring and marketing of terry towels, made-ups, readymade garment like bathrobes, babyhood towels, pillows etc. in the domestic and inter- national market.Site:531609Main Symbol:KGPETRO
Stock trades at 346.0, above its 50dma 321.31. It also trades above its 200dma 239.71. The stock remains bullish on techicals
The 52 week high is at 379.00 and the 52week low is at 82.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.82% over past five years.
– has a low return on equity of 13.18% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 21.4x. Garware Tech. trades at the industry’s max P/E of 39.6x. 531609 trades at a P/E of 11.5x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. 531609 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 0.2%. The max 1- month return was given by Trident: a return of 16.76 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 79.0 cr compared to Rs 25.0 cr for period ended Jun 2020, a rise of 216.0%
Operating Profits reported at Rs 21.0 cr for period ended Jun 2021 vis-vis 2.0 for period ended Jun 2020 .
Operating Margins expanded 1858.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 22.43 compared to Rs 2.91 for previous quarter ended Mar 2021 and Rs -3.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 352.0 cr for period ended TTM vis-vis sales of Rs 298.0 cr for the period ended Mar 2021, a healthy growth of 15.3%. The 3 year sales cagr stood at 12.2%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 13.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 29.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, rising 44.8%.
Company recorded a healthy Net Profit CAGR of 47.7% 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 11.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 261% on a 1 Year basis vis-vis a return of 55% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -26% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.34% vis-vis 25.34% for Mar 2021
Conclusion
– has reduced debt. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.82% over past five years.
– has a low return on equity of 13.18% for last 3 years.
– might be capitalizing the interest cost
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 321.31 and is trading at 346.0, thus bullish price action wise.
