Mehabe score: 5 G Factor: 3 Piotski Score: 4 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 3 and Piotski score of 4.
Description
Bombay Super Hybrid Seeds is engaged in the Business of Agricultural Seeds.Site:BSHSLMain Symbol:www.nseindia.com
Stock trades at 297.0, above its 50dma 285.53. It also trades above its 200dma 211.3. The stock remains bullish on techicals
The 52 week high is at 355.70 and the 52week low is at 75.20
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 10.78 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.0x. Affle India trades at the industry’s max P/E of 103.24x. BSHSL trades at a P/E of 31.5x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. BSHSL has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 10.4%. The max 1- month return was given by Indian Energy Ex: a return of 30.2 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 17.18 cr compared to Rs 17.63 cr for period ended Sep 2020, a fall of 2.6%
Operating Profits reported at Rs 1.09 cr for period ended Sep 2021 vis-vis 0.74 for period ended Sep 2020 .
Operating Margins expanded 214.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.57 compared to Rs 5.57 for previous quarter ended Jun 2021 and Rs 0.41 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 181.0 cr for period ended TTM vis-vis sales of Rs 171.0 cr for the period ended Mar 2021, a growth of 5.5%. The 3 year sales cagr stood at 34.1%.
Operating margins expanded to 7.0% for period ended TTM vis-vis 5.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 40.0%.
Company recorded a healthy Net Profit CAGR of 71.0% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 223% on a 1 Year basis vis-vis a return of 52% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 150% vis-vis a compounded profit growth of 69% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 10.78 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– might be capitalizing the interest cost
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 285.53 and is trading at 297.0 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
