Mehabe score: 4 G Factor: 3 Piotski Score: 6 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 6.
Description
PTC Industries Limited is engaged in manufactures stainless steel castings, alloys steel castings, non-alloy steel castings, steel structure and assembly items.Site:539006Main Symbol:PTCIL
Stock trades at 2580.0, above its 50dma 2262.53. It also trades above its 200dma 1607.43. The stock remains bullish on techicals
The 52 week high is at 2850.00 and the 52week low is at 688.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 8.70 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.06% for last 3 years.
-Debtor days have increased from 114.34 to 141.49 days.
Competition
– The industry trades at a mean P/E of 22.3x. PTC Industries trades at the industry’s max P/E of 148.7x. 539006 trades at a P/E of 149.0x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 8.0. 539006 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Ramkrishna Forg.: a return of 23.98 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 45.06 cr compared to Rs 28.16 cr for period ended Jun 2020, a rise of 60.0%
Operating Profits reported at Rs 13.56 cr for period ended Jun 2021 vis-vis 6.73 for period ended Jun 2020 .
Operating Margins expanded 619.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 10.0 compared to Rs 2.84 for previous quarter ended Mar 2021 and Rs 1.03 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 180.0 cr for period ended TTM vis-vis sales of Rs 163.0 cr for the period ended Mar 2021, a growth of 9.4%. The 3 year sales cagr stood at 6.0%.
Operating margins expanded to 23.0% for period ended TTM vis-vis 21.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 9.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 55.6%.
Company reported a poor Net Profit CAGR of -6.5% 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 stock has given a return of 269% on a 1 Year basis vis-vis a return of 78% over the last 3 Years. – The compounded sales growth on a TTM bassis is 15% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 3% vis-vis a compounded profit growth of -16% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.24% vis-vis 32.24% for Mar 2021
Conclusion
– – Stock is trading at 8.70 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.06% for last 3 years.
-Debtor days have increased from 114.34 to 141.49 days.
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 2262.53 and is trading at 2580.0 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
