Mehabe score: 3 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
Balmer Lawrie Investments Ltd is a Government Enterprise. It’s a major stakeholder of Balmer Lawrie & Co. Ltd. The company along with its subsidiaries is engaged in the business of Industrial Packaging, Greases & Lubricants, Leather Chemicals, etc. [1]Site:532485Main Symbol:BLIL
Stock trades at 413.0, below its 50dma 456.21 and below its 200dma 447.23. The stock remains bearish on technicals
The 52 week high is at 525.55 and the 52week low is at 325.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is providing a good dividend yield of 9.21%.
– has a good return on equity (ROE) track record: 3 Years ROE 48.23%
– has been maintaining a healthy dividend payout of 99.58%
Weakness
– Tax rate seems low
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 97.2x. 532485 trades at a P/E of 13.6x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 6.0. 532485 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is -1.3%. The max 1- month return was given by Muthoot Finance: a return of 5.13 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 65.0 cr compared to Rs 81.0 cr for period ended Sep 2020, a fall of 19.8%
Operating Profits reported at Rs 65.0 cr for period ended Sep 2021 vis-vis 81.0 for period ended Sep 2020 .
The EPS for Sep 2021 was Rs 29.0 compared to Rs 0.25 for previous quarter ended Jun 2021 and Rs 36.43 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 70.0 cr for period ended TTM vis-vis sales of Rs 87.0 cr for the period ended Mar 2021, a fall of 24.3%. The 3 year sales cagr stood at -4.0%.
Operating margins shrank to 98.0% for period ended TTM vis-vis 99.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 67.0 cr for period ended TTM vis-vis sales of Rs 85.0 cr for the period ended Mar 2021, falling 26.9%.
Company reported a poor Net Profit CAGR of -4.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 83.0 cr for period ended Mar 2021 vis-vis Rs 76.0 cr for period ended Mar 2020
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 48.0% compared to 48.0% over the last 3 Years. – The stock has given a return of 25% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is -21% vis-vis a compounded profit growth of 16% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 4.55% vis-vis 5.81% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 35.63% vis-vis 34.38% for Jun 2021
Conclusion
– is almost debt free.
-Stock is providing a good dividend yield of 9.21%.
– has a good return on equity (ROE) track record: 3 Years ROE 48.23%
– has been maintaining a healthy dividend payout of 99.58% – Tax rate seems low
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 below its 50 DMA 456.21 and is trading at 413.0. Shows a near term lack of buying interest.
