Mehabe score: 4 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & 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 3 and Piotski score of 7.
Description
India Motor Parts & Accessories Ltd is engaged in the distribution of automobile spare parts and accessories through its distribution network representing over 50 manufacturers.#
Main Points
Product Portfolio
The products that the company distributes include brake systems, steering linkages, powertrain components, engine parts, wheel rims and various others.
The manufacturers of these products are Brakes India Pvt Ltd, Rane (Madras) Ltd, Sundram Fasteners Ltd, Wabco India Ltd, Wheels India Ltd and others.Site:IMPAL
Market Cap:
Rs 871 cr
Price:
697.0
Trading pe:
19.2x
Book-value:
791/share
Div yield:
1.44 %
Earning yield:
6.73%
Face-value:
10.0/share
52week high:
731.00
52week low:
472.00
Technical Analysis
Stock trades at 697.0, above its 50dma 677.1. It also trades above its 200dma 624.23. The stock remains bullish on techicals
The 52 week high is at 731.00 and the 52week low is at 472.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.88 times its book value
– has been maintaining a healthy dividend payout of 30.68%
Weakness
– The company has delivered a poor sales growth of 0.26% over past five years.
-Promoter holding is low: 30.71%
– has a low return on equity of 3.62% for last 3 years.
-Earnings include an other income of Rs.24.52 Cr.
Competition
– The industry trades at a mean P/E of 32.0x. WABCO India trades at the industry’s max P/E of 127.28x. IMPAL trades at a P/E of 19.2x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. IMPAL has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Endurance Tech.: a return of 15.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 161.0 cr compared to Rs 119.0 cr for period ended Mar 2020, a rise of 35.3%
Operating Profits reported at Rs 19.0 cr for period ended Mar 2021 vis-vis 9.0 for period ended Mar 2020 .
Operating Margins expanded 423.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 14.94 compared to Rs 12.23 for previous quarter ended Dec 2020 and Rs 11.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 518.0 cr for period ended Mar 2021 vis-vis sales of Rs 519.0 cr for the period ended Mar 2020, a fall of 0.2%. The 3 year sales cagr stood at 2.9%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 7.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 50.0 cr for period ended Mar 2021 vis-vis sales of Rs 49.0 cr for the period ended Mar 2020, rising 2.0%.
Company recorded a healthy Net Profit CAGR of 17.3% 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 39% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -8% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.88 times its book value
– has been maintaining a healthy dividend payout of 30.68% – The company has delivered a poor sales growth of 0.26% over past five years.
-Promoter holding is low: 30.71%
– has a low return on equity of 3.62% for last 3 years.
-Earnings include an other income of Rs.24.52 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 677.1 and is trading at 697.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
