Mehabe score: 3 G Factor: 2 Piotski Score: 4 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 2 and Piotski score of 4.
Description
Yash Chemex is engaged in the business of Wholesale of industrial chemicals.Site:539939Main Symbol:YASHCHEM
Stock trades at 41.0, below its 50dma 43.1 and below its 200dma 47.13. The stock remains bearish on technicals
The 52 week high is at 66.30 and the 52week low is at 34.90
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.71% for last 3 years.
-Earnings include an other income of Rs.1.34 Cr.
– has high debtors of 230.97 days.
Competition
– The industry trades at a mean P/E of 48.1x. 3M India trades at the industry’s max P/E of 185.06x. 539939 trades at a P/E of 22.1x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. 539939 has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is -3.4%. The max 1- month return was given by Adani Enterp.: a return of 4.34 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 20.49 cr compared to Rs 30.22 cr for period ended Mar 2020, a fall of 32.2%
Operating Profits reported at Rs 1.26 cr for period ended Mar 2021 vis-vis 0.66 for period ended Mar 2020 .
Operating Margins expanded 396.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.99 compared to Rs 0.62 for previous quarter ended Dec 2020 and Rs 1.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 56.48 cr for period ended Mar 2021 vis-vis sales of Rs 78.48 cr for the period ended Mar 2020, a fall of 39.0%. The 3 year sales cagr stood at -12.8%.
Operating margins expanded to 5.44% for period ended Mar 2021 vis-vis 4.35% for period ended Mar 2020, expansion of 109.0 bps.
Net Profit reported at Rs 1.9 cr for period ended Mar 2021 vis-vis sales of Rs 2.38 cr for the period ended Mar 2020, falling 25.3%.
Company recorded a Net Profit CAGR of 1.3% 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 0.72 cr for period ended Mar 2021 vis-vis Rs 0.3 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -37% 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 -28% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -20% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 45.2% vis-vis 45.26% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.71% for last 3 years.
-Earnings include an other income of Rs.1.34 Cr.
– has high debtors of 230.97 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 43.1 and is trading at 41.0. 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
