Mehabe score: 6 G Factor: 6 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 6 and Piotski score of 8.
Description
Hitech Corporation is engaged in the business of manufacturing of rigid plastic packaging products specially catering to customers relating to Paints, Lube, Agro chemical, FMCG, Personal and Health care and Home care product as well as export market.Site:HITECHCORPMain Symbol:HITECHCORP
Stock trades at 233.0, above its 50dma 195.33. It also trades above its 200dma 142.25. The stock remains bullish on techicals
The 52 week high is at 263.65 and the 52week low is at 65.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.63% over past five years.
– has a low return on equity of 4.57% for last 3 years.
Competition
– The industry trades at a mean P/E of 16.7x. EPL Ltd trades at the industry’s max P/E of 35.09x. HITECHCORP trades at a P/E of 29.1x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 9.0. HITECHCORP has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 16.0%. The max 1- month return was given by Hitech Corp.: a return of 34.05 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 138.0 cr compared to Rs 109.0 cr for period ended Mar 2020, a rise of 26.6%
Operating Profits reported at Rs 20.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins expanded 256.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.22 compared to Rs 2.63 for previous quarter ended Dec 2020 and Rs 0.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 447.0 cr for period ended Mar 2021 vis-vis sales of Rs 460.0 cr for the period ended Mar 2020, a fall of 2.9%. The 3 year sales cagr stood at 4.8%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 17.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, rising 88.2%.
Company recorded a healthy Net Profit CAGR of 28.6% 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 65.0 cr for period ended Mar 2021 vis-vis Rs 56.0 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 209% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 268% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.55% vis-vis 25.55% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.63% over past five years.
– has a low return on equity of 4.57% for last 3 years.
