Mehabe score: 4 G Factor: 8 Piotski Score: 7 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 8 and Piotski score of 7.
Description
Godfrey Phillips India is one of the largest FMCG companies in the country with many iconic cigarette brands like Four Square, Red & White, and Cavanders to its name. It also have an exclusive sourcing and supply agreement with Philip Morris International to manufacture and distribute the renowned Marlboro brand in India. #
Main Points
Increase in Market Share
During FY20, the company experienced a rise of 9.7% in the volume sales of its cigarettes and saw a rise in the domestic cigarette market share from 11.8% to 12.9%. #Site:GODFRYPHLPMain Symbol:GODFRYPHLP
Stock trades at 1059.0, above its 50dma 954.66. It also trades above its 200dma 936.17. The stock remains bullish on techicals
The 52 week high is at 1110.00 and the 52week low is at 831.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 27.18%
Weakness
– The company has delivered a poor sales growth of 1.62% over past five years.
Competition
– The industry trades at a mean P/E of 13.8x. ITC trades at the industry’s max P/E of 19.29x. GODFRYPHLP trades at a P/E of 14.6x
– Industry’s mean G-Factor is 6.0 while the mean Piotski score is 7.0. GODFRYPHLP has a G-Factor of 8 and Piotski scoreof 7.
– Average 1 month return for industry is 0.8%. The max 1- month return was given by Godfrey Phillips: a return of 12.43 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 706.0 cr compared to Rs 592.0 cr for period ended Mar 2020, a rise of 19.3%
Operating Profits reported at Rs 157.0 cr for period ended Mar 2021 vis-vis 80.0 for period ended Mar 2020 .
Operating Margins expanded 872.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 18.32 compared to Rs 23.61 for previous quarter ended Dec 2020 and Rs 7.44 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2525.0 cr for period ended Mar 2021 vis-vis sales of Rs 2877.0 cr for the period ended Mar 2020, a fall of 13.9%. The 3 year sales cagr stood at 2.8%.
Net Profit reported at Rs 377.0 cr for period ended Mar 2021 vis-vis sales of Rs 385.0 cr for the period ended Mar 2020, falling 2.1%.
Company recorded a healthy Net Profit CAGR of 33.3% 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 16.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 14% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -12% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -2% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 10.55% vis-vis 10.66% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 14.73% vis-vis 14.59% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 27.18% – The company has delivered a poor sales growth of 1.62% over past five years.
