Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 7.
Description
Dollar Industries is primarily engaged in manufacture and sale of hosiery products in knitted inner wears, casual wears and thermal wears.Site:DOLLARMain Symbol:DOLLAR
Stock trades at 326.0, above its 50dma 295.79. It also trades above its 200dma 240.51. The stock remains bullish on techicals
The 52 week high is at 366.95 and the 52week low is at 124.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– The company has delivered a poor sales growth of 6.46% over past five years.
– might be capitalizing the interest cost
-Dividend payout has been low at 14.87% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 23.2x. Garware Tech. trades at the industry’s max P/E of 42.93x. DOLLAR trades at a P/E of 21.2x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. DOLLAR has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 7.7%. The max 1- month return was given by Welspun India: a return of 15.86 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 308.0 cr compared to Rs 237.0 cr for period ended Mar 2020, a rise of 30.0%
Operating Profits reported at Rs 31.0 cr for period ended Mar 2021 vis-vis 21.0 for period ended Mar 2020 .
Operating Margins expanded 120.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.54 compared to Rs 5.0 for previous quarter ended Dec 2020 and Rs 2.35 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1037.0 cr for period ended Mar 2021 vis-vis sales of Rs 969.0 cr for the period ended Mar 2020, a growth of 6.6%. The 3 year sales cagr stood at 3.8%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 87.0 cr for period ended Mar 2021 vis-vis sales of Rs 59.0 cr for the period ended Mar 2020, rising 32.2%.
Company recorded a healthy Net Profit CAGR of 10.8% 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 132.0 cr for period ended Mar 2021 vis-vis Rs 53.0 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 17.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 142% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 47% vis-vis a compounded profit growth of 11% 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 remained largely constant. The Mar 2021 public holding stood at 23.34% vis-vis 23.18% for Dec 2020
Conclusion
– has reduced debt. – The company has delivered a poor sales growth of 6.46% over past five years.
– might be capitalizing the interest cost
-Dividend payout has been low at 14.87% of profits over last 3 years
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 295.79 and is trading at 326.0, thus bullish price action wise.
