Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 6.
Description
Agarwal Industrial Corporation Ltd is primarily engaged in the business activities of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), logistics of bitumen and liquefied Petroleum Gas and energy generation through Wind Mills.#
Main Points
Products/ Services Offered
Presently, the company has 4 different business segments :-
1. Manufacturing and trading of Bitumen & value added Bituminous Products
2. Co. has large fleet of specialized Bulk Bitumen & LPG Tankers (Logistics)
3. Generates power through wind mills situated in Jaisalmer and Dhulia.
4. Undertaking of various ship/ vessel/ ocean related activities through its wholly owned subsidiary AICL Overseas FZ – LLC.Site:AGARIND
Market Cap:
Rs 301 cr
Price:
262.0
Trading pe:
14.0x
Book-value:
127/share
Div yield:
0.57 %
Earning yield:
11.04%
Face-value:
10.0/share
52week high:
265.00
52week low:
65.30
Technical Analysis
Stock trades at 262.0, above its 50dma 198.62. It also trades above its 200dma 146.67. The stock remains bullish on techicals
The 52 week high is at 265.00 and the 52week low is at 65.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 26.21% CAGR over last 5 years
-Promoter holding has increased by 4.22% over last quarter.
-‘s median sales growth is 28.50% of last 10 years
Weakness
– has a low return on equity of 12.07% for last 3 years.
Competition
– The industry trades at a mean P/E of 10.5x. DCW trades at the industry’s max P/E of 254.83x. AGARIND trades at a P/E of 14.0x
– Industry’s mean G-Factor is 5.9 while the mean Piotski score is 9.0. AGARIND has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 19.2%. The max 1- month return was given by Agarwal Indl.: a return of 32.18 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 427.0 cr compared to Rs 294.0 cr for period ended Mar 2020, a rise of 45.2%
Operating Profits reported at Rs 20.0 cr for period ended Mar 2021 vis-vis 11.0 for period ended Mar 2020 .
Operating Margins expanded 94.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 11.22 compared to Rs 7.95 for previous quarter ended Dec 2020 and Rs 5.99 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 833.0 cr for period ended Mar 2021 vis-vis sales of Rs 752.0 cr for the period ended Mar 2020, a growth of 9.7%. The 3 year sales cagr stood at 26.6%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 22.0 cr for period ended Mar 2021 vis-vis sales of Rs 15.0 cr for the period ended Mar 2020, rising 31.8%.
Company recorded a healthy Net Profit CAGR of 30.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -6.0 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 270% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 27% over the last 3 Years. – The compounded profit growth on a TTM basis is 46% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.04% vis-vis 0.04% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 40.63% vis-vis 40.63% for Dec 2020
Conclusion
– has delivered good profit growth of 26.21% CAGR over last 5 years
-Promoter holding has increased by 4.22% over last quarter.
-‘s median sales growth is 28.50% of last 10 years – has a low return on equity of 12.07% for last 3 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 198.62 and is trading at 262.0, thus bullish price action wise.
