Mehabe score: 2 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Archidply Industries is the flagship company of the Archidply group. The Archidply Group has been associated with plywood manufacturing for more than 37 years. The Group has grown from a small saw mill in Assam to a modern state-of-the-art manufacturer of wood panel products and decorative surfacing products in three locations, Rudrapur, Chintamani and Assam, with a network of branches, distributors and dealers across India.Site:ARCHIDPLY
Market Cap:
Rs 71.4 cr
Price:
36.0
Trading pe:
86.0x
Book-value:
44.3/share
Div yield:
0.00 %
Earning yield:
7.76%
Face-value:
10.0/share
52week high:
46.90
52week low:
20.10
Technical Analysis
Stock trades at 36.0, above its 50dma 33.98. It also trades above its 200dma 31.4. The stock remains bullish on techicals
The 52 week high is at 46.90 and the 52week low is at 20.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.81 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -3.49%
-The company has delivered a poor sales growth of 0.65% over past five years.
– has a low return on equity of 4.26% for last 3 years.
Competition
– The industry trades at a mean P/E of 28.1x. Jubilant Ingrevia trades at the industry’s max P/E of 141.67x. ARCHIDPLY trades at a P/E of 86.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. ARCHIDPLY has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 12.5%. The max 1- month return was given by Jubilant Ingrevia: a return of 34.58 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 80.13 cr compared to Rs 61.19 cr for period ended Mar 2020, a rise of 31.0%
Operating Profits reported at Rs 4.01 cr for period ended Mar 2021 vis-vis 2.9 for period ended Mar 2020 .
Operating Margins expanded 26.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.13 compared to Rs 1.25 for previous quarter ended Dec 2020 and Rs -0.53 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 231.0 cr for period ended Mar 2021 vis-vis sales of Rs 264.0 cr for the period ended Mar 2020, a fall of 14.3%. The 3 year sales cagr stood at -8.0%.
Net Profit reported at Rs 2.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, falling 100.0%.
Company reported a poor Net Profit CAGR of -12.6% 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 68% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -88% vis-vis a compounded profit growth of -17% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 30.82% vis-vis 27.33% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.81 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -3.49%
-The company has delivered a poor sales growth of 0.65% over past five years.
– has a low return on equity of 4.26% for last 3 years.
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 33.98 and is trading at 36.0 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
