Mehabe score: 1 G Factor: 3 Piotski Score: 6 The stock has a rating SELL. 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
CHD Chemicals is a chemicals and dyes trading and distribution company. The Company is engaged in the sale of industrial chemicals. It is engaged in the trading and distribution of chemicals and dyes for textiles industry, leather and paper industries.Site:539800
Market Cap:
Rs 13.5 cr
Price:
13.4
Trading pe:
226.0x
Book-value:
12.7/share
Div yield:
1.12 %
Earning yield:
7.97%
Face-value:
10.0/share
52week high:
74.95
52week low:
11.44
Technical Analysis
Stock trades at 13.4, below its 50dma 15.46 and below its 200dma 28.2. The stock remains bearish on technicals
The 52 week high is at 74.95 and the 52week low is at 11.44
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.06 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of 3.41% for last 3 years.
– has high debtors of 183.40 days.
Competition
– The industry trades at a mean P/E of 39.8x. CHD Chemicals trades at the industry’s max P/E of 225.5x. 539800 trades at a P/E of 226.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 539800 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 16.2%. The max 1- month return was given by Redington India: a return of 39.14 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 69.2 cr for period ended Mar 2021 vis-vis sales of Rs 85.82 cr for the period ended Mar 2020, a fall of 24.0%. The 3 year sales cagr stood at 26.3%.
Operating margins shrank to 0.98% for period ended Mar 2021 vis-vis 1.55% for period ended Mar 2020, contraction of 57.0 bps.
Net Profit reported at Rs 0.06 cr for period ended Mar 2021 vis-vis sales of Rs 0.53 cr for the period ended Mar 2020, falling 783.3%.
Company reported a poor Net Profit CAGR of -51.3% 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 stock has given a return of -66% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is -89% vis-vis a compounded profit growth of -51% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 58.7% vis-vis 58.7% for Dec 2020
Conclusion
– Stock is trading at 1.06 times its book value – has low interest coverage ratio.
– has a low return on equity of 3.41% for last 3 years.
– has high debtors of 183.40 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 15.46 and is trading at 13.4. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
