Mehabe score: 6 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
Maximus International is engaged in the business of importing and exporting lubricant oils, different types of base oils and other chemical products used mainly in the Automobile Industry, Power Industry and Metal manufacturing among others. The Company acts as a Merchant Exporter and Sourcing Company with a niche focus on lubricants & base oils and also started trading in plastic additives used for master batch and certain agro related products. Its Subsidiary Company namely Maximus Global FZE-Sharjah-UAE engaged in the similar activity.Site:540401
Market Cap:
Rs 115 cr
Price:
91.7
Trading pe:
37.1x
Book-value:
16.9/share
Div yield:
0.00 %
Earning yield:
4.28%
Face-value:
10.0/share
52week high:
159.60
52week low:
69.55
Technical Analysis
Stock trades at 91.7, below its 50dma 97.94 and below its 200dma 102.01. The stock remains bearish on technicals
The 52 week high is at 159.60 and the 52week low is at 69.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 44.8x. 3M India trades at the industry’s max P/E of 189.17x. 540401 trades at a P/E of 37.1x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 540401 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 7.2%. The max 1- month return was given by Redington India: a return of 45.86 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 12.52 cr compared to Rs 11.82 cr for period ended Mar 2020, a rise of 5.9%
Operating Profits reported at Rs 1.24 cr for period ended Mar 2021 vis-vis 1.55 for period ended Mar 2020 .
Operating Margins contracted -320.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.39 compared to Rs 0.6 for previous quarter ended Dec 2020 and Rs 0.69 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 52.47 cr for period ended Mar 2021 vis-vis sales of Rs 30.74 cr for the period ended Mar 2020, a healthy growth of 41.4%. The 3 year sales cagr stood at 16.6%.
Operating margins expanded to 10.9% for period ended Mar 2021 vis-vis 9.76% for period ended Mar 2020, expansion of 114.0 bps.
Net Profit reported at Rs 3.11 cr for period ended Mar 2021 vis-vis sales of Rs 2.5 cr for the period ended Mar 2020, rising 19.6%.
Company recorded a healthy Net Profit CAGR of 28.4% 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 2.01 cr for period ended Mar 2021 vis-vis Rs 0.0 cr for period ended Mar 2020
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 15.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 22% on a 1 Year basis vis-vis a return of 66% over the last 3 Years. – The compounded sales growth on a TTM bassis is 71% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 24% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.37% vis-vis 36.37% for Dec 2020
Conclusion
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
-‘s cost of borrowing seems high
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 97.94 and is trading at 91.7. 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
