Mehabe score: 7 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
Description
Shish Industries is engaged in manufacturing of Saffguard and Stagguard which are twin wall or Multi Wall Boards made from Plastic resin bought from world’s best manufacturer. The Company manufacture mainly 1.3 meter width corrugated sheets ranging from 2mm to 5mm thickness and 1.6 meter ranging from 2mm to 12mm thickness. The Company also manufacture Plastic fluted boards which are available in various thicknesses and colors ranging from 1.5 mm to 15 mm depending upon the requirement of the client.Site:540693Main Symbol:SHISHIND
Stock trades at 67.7, above its 50dma 63.6. It also trades above its 200dma 52.9. The stock remains bullish on techicals
The 52 week high is at 93.10 and the 52week low is at 20.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 36.06 to 25.94 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.43% for last 3 years.
-Earnings include an other income of Rs.1.27 Cr.
Competition
– The industry trades at a mean P/E of 24.8x. Responsive Ind trades at the industry’s max P/E of 108.67x. 540693 trades at a P/E of 38.9x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 540693 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.7%. The max 1- month return was given by Apollo Pipes: a return of 26.19 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 13.27 cr compared to Rs 7.47 cr for period ended Sep 2020, a rise of 77.6%
Operating Profits reported at Rs 0.58 cr for period ended Sep 2021 vis-vis 0.57 for period ended Sep 2020 .
Operating Margins contracted -326.0 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.5 compared to Rs 0.42 for previous quarter ended Jun 2021 and Rs 0.33 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 42.6 cr for period ended TTM vis-vis sales of Rs 28.28 cr for the period ended Mar 2021, a healthy growth of 33.6%. The 3 year sales cagr stood at 56.9%.
Operating margins shrank to 5.8% for period ended TTM vis-vis 7.89% for period ended Mar 2021, contraction of 209.0 bps.
Net Profit reported at Rs 1.76 cr for period ended TTM vis-vis sales of Rs 1.34 cr for the period ended Mar 2021, rising 23.9%.
Company recorded a healthy Net Profit CAGR of 25.5% 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 1.95 cr for period ended Mar 2021 vis-vis Rs 0.53 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 13.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 201% on a 1 Year basis vis-vis a return of 64% over the last 3 Years. – The compounded sales growth on a TTM bassis is 77% vis-vis a compounded sales growth of 50% over the last 3 Years. – The compounded profit growth on a TTM basis is 38% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 29.42% vis-vis 29.42% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 36.06 to 25.94 days. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.43% for last 3 years.
-Earnings include an other income of Rs.1.27 Cr.
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 63.6 and is trading at 67.7, thus bullish price action wise.
