Mehabe score: 4 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Chembond Chemicals is engaged in the Business of Manufacturing of Chemicals and Chemical products.Site:CHEMBONDMain Symbol:CHEMBOND
Stock trades at 239.0, above its 50dma 213.42. It also trades above its 200dma 193.58. The stock remains bullish on techicals
The 52 week high is at 257.70 and the 52week low is at 135.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.10 times its book value
– has been maintaining a healthy dividend payout of 58.04%
Weakness
– The company has delivered a poor sales growth of 0.28% over past five years.
– has a low return on equity of 4.93% for last 3 years.
-Earnings include an other income of Rs.13.33 Cr.
Competition
– The industry trades at a mean P/E of 30.6x. Pidilite Inds. trades at the industry’s max P/E of 103.62x. CHEMBOND trades at a P/E of 15.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. CHEMBOND has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 10.1%. The max 1- month return was given by Chembond Chem.: a return of 19.13 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 77.71 cr compared to Rs 50.78 cr for period ended Jun 2020, a rise of 53.0%
Operating Profits reported at Rs 5.53 cr for period ended Jun 2021 vis-vis 3.4 for period ended Jun 2020 .
Operating Margins expanded 42.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.56 compared to Rs 3.76 for previous quarter ended Mar 2021 and Rs 2.74 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 302.0 cr for period ended TTM vis-vis sales of Rs 274.0 cr for the period ended Mar 2021, a growth of 9.3%. The 3 year sales cagr stood at 0.1%.
Net Profit reported at Rs 21.0 cr for period ended TTM vis-vis sales of Rs 20.0 cr for the period ended Mar 2021, rising 4.8%.
Company recorded a Net Profit CAGR of 7.3% 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 25.0 cr for period ended Mar 2021 vis-vis Rs 24.0 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 7.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 62% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 1311% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 33.42% vis-vis 33.76% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.10 times its book value
– has been maintaining a healthy dividend payout of 58.04% – The company has delivered a poor sales growth of 0.28% over past five years.
– has a low return on equity of 4.93% for last 3 years.
-Earnings include an other income of Rs.13.33 Cr.
