Mehabe score: 4 G Factor: 5 Piotski Score: 7 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 7.
Description
Commercial Syn Bags Ltd is one of the oldest players in the packaging industry. It manufactures bulk flexible packaging products, industrial traps, covers and other products.#
Stock trades at 126.0, above its 50dma 108.37. It also trades above its 200dma 88.41. The stock remains bullish on techicals
The 52 week high is at 141.10 and the 52week low is at 46.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 50.32 to 35.25 days.
-Promoter holding has increased by 1.73% over last quarter.
-‘s median sales growth is 20.59% of last 10 years
Weakness
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Competition
– The industry trades at a mean P/E of 13.2x. EPL Ltd trades at the industry’s max P/E of 32.77x. 539986 trades at a P/E of 13.8x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 9.0. 539986 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by Commerl. Synbags: a return of 36.42 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 65.37 cr compared to Rs 46.59 cr for period ended Mar 2020, a rise of 40.3%
Operating Profits reported at Rs 8.48 cr for period ended Mar 2021 vis-vis 5.69 for period ended Mar 2020 .
Operating Margins expanded 75.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.4 compared to Rs 2.13 for previous quarter ended Dec 2020 and Rs 2.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 214.0 cr for period ended Mar 2021 vis-vis sales of Rs 191.0 cr for the period ended Mar 2020, a healthy growth of 10.7%.
Operating margins shrank to 11.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 12.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, rising 8.3%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 145% on a 1 Year basis vis-vis a return of 41% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 38.85% vis-vis 40.58% for Dec 2020
Conclusion
– Debtor days have improved from 50.32 to 35.25 days.
-Promoter holding has increased by 1.73% over last quarter.
-‘s median sales growth is 20.59% of last 10 years –
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 108.37 and is trading at 126.0, thus bullish price action wise.
