Mehabe score: 1 G Factor: 4 Piotski Score: 5 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 5.
Description
Agro Phos (India) is an ISO 9001:2008 certified Company engaged in the manufacturing of fertilisers such as Single Super Phosphate (SSP), Nitrogen Phosphate and Potassium (NPK), Zinc Sulphate, Organic manure and Calcium Sulphate commonly known as soil conditioner or gypsum.Site:AGROPHOS
Market Cap:
Rs 27.1 cr
Price:
13.4
Trading pe:
8.51x
Book-value:
19.0/share
Div yield:
0.00 %
Earning yield:
12.78%
Face-value:
10.0/share
52week high:
21.00
52week low:
7.45
Technical Analysis
Stock trades at 13.4, below its 50dma 13.43 and below its 200dma 14.9. The stock remains bearish on technicals
The 52 week high is at 21.00 and the 52week low is at 7.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.70 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -11.43% over past five years.
-Tax rate seems low
– has a low return on equity of 7.25% for last 3 years.
-Earnings include an other income of Rs.18.97 Cr.
– has high debtors of 188.08 days.
Competition
– The industry trades at a mean P/E of 13.0x. F A C T trades at the industry’s max P/E of 25.38x. AGROPHOS trades at a P/E of 8.51x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. AGROPHOS has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 5.2%. The max 1- month return was given by F A C T: a return of 13.9 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 6.46 cr compared to Rs 13.35 cr for period ended Mar 2020, a fall of 51.6%
Company reported negative operating profit of Rs -1.79 cr for period ended Mar 2021. For same period last year, operating profit was -4.22
The EPS for Mar 2021 was Rs -0.1 compared to Rs 0.88 for previous quarter ended Dec 2020 and Rs -0.08 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 41.24 cr for period ended Mar 2021 vis-vis sales of Rs 51.94 cr for the period ended Mar 2020, a fall of 25.9%. The 3 year sales cagr stood at -6.5%.
Operating margins shrank to -29.95% for period ended Mar 2021 vis-vis -19.68% for period ended Mar 2020, contraction of 1027.0 bps.
Net Profit reported at Rs 3.18 cr for period ended Mar 2021 vis-vis sales of Rs 3.92 cr for the period ended Mar 2020, falling 23.3%.
Company recorded a healthy Net Profit CAGR of 32.7% 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 8.0% compared to 7.0% over the last 3 Years. – The stock has given a return of -22% on a 1 Year basis vis-vis a return of -26% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Conclusion
– Stock is trading at 0.70 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -11.43% over past five years.
-Tax rate seems low
– has a low return on equity of 7.25% for last 3 years.
-Earnings include an other income of Rs.18.97 Cr.
– has high debtors of 188.08 days.
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 below its 50 DMA 13.43 and is trading at 13.4. Shows a near term lack of buying interest.
