Mehabe score: 6 G Factor: 4 Piotski Score: 7 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 7.
Description
Clariant Chemicals (India) is engaged interalia, in manufacturing and selling Specialty Chemicals.Site:CLNINDIAMain Symbol:CLNINDIA
Stock trades at 604.0, above its 50dma 534.58. It also trades above its 200dma 436.9. The stock remains bullish on techicals
The 52 week high is at 620.05 and the 52week low is at 288.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is providing a good dividend yield of 10.76%.
– has been maintaining a healthy dividend payout of 129.91%
Weakness
– Stock is trading at 3.43 times its book value
-The company has delivered a poor sales growth of -8.51% over past five years.
– has a low return on equity of 6.14% for last 3 years.
-Earnings include an other income of Rs.270.68 Cr.
Competition
– The industry trades at a mean P/E of 30.9x. Pidilite Inds. trades at the industry’s max P/E of 101.04x. CLNINDIA trades at a P/E of 33.5x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. CLNINDIA has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by Navin Fluo.Intl.: a return of 15.51 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 219.0 cr compared to Rs 169.0 cr for period ended Mar 2020, a rise of 29.6%
Operating Profits reported at Rs 27.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins expanded 463.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.75 compared to Rs 5.72 for previous quarter ended Dec 2020 and Rs 6.66 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 731.0 cr for period ended Mar 2021 vis-vis sales of Rs 757.0 cr for the period ended Mar 2020, a fall of 3.6%. The 3 year sales cagr stood at -10.3%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 220.0 cr for period ended Mar 2021 vis-vis sales of Rs 51.0 cr for the period ended Mar 2020, rising 76.8%.
Company recorded a healthy Net Profit CAGR of 115.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 6.0% over the last 3 Years. – The stock has given a return of 2% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% 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 0.23% vis-vis 0.34% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 44.91% vis-vis 44.57% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is providing a good dividend yield of 10.76%.
– has been maintaining a healthy dividend payout of 129.91% – Stock is trading at 3.43 times its book value
-The company has delivered a poor sales growth of -8.51% over past five years.
– has a low return on equity of 6.14% for last 3 years.
-Earnings include an other income of Rs.270.68 Cr.
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 534.58 and is trading at 604.0, thus bullish price action wise.
