Mehabe score: 6 G Factor: 3 Piotski Score: 8 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 8.
Description
Mitsu Chem Plast is engaged in the business of Manufacture of plastic articles for the packing of goods (plastic bags, sacks, containers, boxes, cases, carboys, bottles etc.)Site:540078Main Symbol:MITSU
Stock trades at 268.0, above its 50dma 244.76. It also trades above its 200dma 180.44. The stock remains bullish on techicals
The 52 week high is at 285.65 and the 52week low is at 80.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 38.38% CAGR over last 5 years
-Promoter holding has increased by 2.00% over last quarter.
Weakness
– Stock is trading at 8.15 times its book value
Competition
– The industry trades at a mean P/E of 22.4x. Responsive Ind trades at the industry’s max P/E of 112.31x. 540078 trades at a P/E of 27.9x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 540078 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is -2.2%. The max 1- month return was given by Mitsu Chem Plast: a return of 5.98 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 59.46 cr compared to Rs 32.56 cr for period ended Jun 2020, a rise of 82.6%
Operating Profits reported at Rs 7.66 cr for period ended Jun 2021 vis-vis 4.93 for period ended Jun 2020 .
Operating Margins contracted -225.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.06 compared to Rs 1.82 for previous quarter ended Mar 2021 and Rs 1.5 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 205.0 cr for period ended TTM vis-vis sales of Rs 178.0 cr for the period ended Mar 2021, a healthy growth of 13.2%. The 3 year sales cagr stood at 17.9%.
Net Profit reported at Rs 12.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 16.7%.
Company recorded a healthy Net Profit CAGR of 44.2% 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 173% on a 1 Year basis vis-vis a return of 69% over the last 3 Years. – The compounded sales growth on a TTM bassis is 48% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 127% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 38.38% CAGR over last 5 years
-Promoter holding has increased by 2.00% over last quarter. – Stock is trading at 8.15 times its book value
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 244.76 and is trading at 268.0 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
