Mehabe score: 3 G Factor: 5 Piotski Score: 6 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 6.
Description
India Power Corp. is engaged in Business of Electricity Generation & Distribution. IPCL serves various consumer segments ranging from Govt establishments, Industrial houses, Railways to Domestic Consumers. (Source : 201903 Annual Report Page No: 67)Site:DPSCLTD
Market Cap:
Rs 1,694 cr
Price:
17.4
Trading pe:
64.6x
Book-value:
16.6/share
Div yield:
0.29 %
Earning yield:
3.07%
Face-value:
1.00/share
52week high:
20.50
52week low:
7.30
Technical Analysis
Stock trades at 17.4, above its 50dma 13.37. It also trades above its 200dma 12.41. The stock remains bullish on techicals
The 52 week high is at 20.50 and the 52week low is at 7.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.05 times its book value
– has been maintaining a healthy dividend payout of 28.45%
-Debtor days have improved from 79.78 to 44.95 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.11% over past five years.
-Tax rate seems low
– has a low return on equity of 0.85% for last 3 years.
-Promoters have pledged 67.24% of their holding.
Competition
– The industry trades at a mean P/E of 21.4x. Adani Green trades at the industry’s max P/E of 901.32x. DPSCLTD trades at a P/E of 64.6x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. DPSCLTD has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 22.0%. The max 1- month return was given by Adani Power: a return of 52.18 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 165.87 cr compared to Rs 128.09 cr for period ended Mar 2020, a rise of 29.5%
Operating Profits reported at Rs 14.82 cr for period ended Mar 2021 vis-vis 18.78 for period ended Mar 2020 .
Operating Margins contracted -572.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.04 compared to Rs 0.17 for previous quarter ended Dec 2020 and Rs 0.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 525.0 cr for period ended Mar 2021 vis-vis sales of Rs 481.0 cr for the period ended Mar 2020, a growth of 8.4%. The 3 year sales cagr stood at -10.7%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 10.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 26.0 cr for period ended Mar 2021 vis-vis sales of Rs 13.0 cr for the period ended Mar 2020, rising 50.0%.
Company recorded a Net Profit CAGR of 9.1% 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 2.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 94% 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 9% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 121% over the last 3 Years.
Ratios
Conclusion
– Stock is trading at 1.05 times its book value
– has been maintaining a healthy dividend payout of 28.45%
-Debtor days have improved from 79.78 to 44.95 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.11% over past five years.
-Tax rate seems low
– has a low return on equity of 0.85% for last 3 years.
-Promoters have pledged 67.24% of their holding.
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 13.37 and is trading at 17.4, thus bullish price action wise.
