Mehabe score: 2 G Factor: 2 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 2 and Piotski score of 7.
Description
Kingfa Science & Technology (India) is engaged in the business of manufacturing and supplier of high quality reinforced polypropylene compounds, thermoplastics elastomers and fibre re-inforced composites.Site:KINGFA
Market Cap:
Rs 1,341 cr
Price:
1107.0
Trading pe:
309.0x
Book-value:
290/share
Div yield:
0.00 %
Earning yield:
0.73%
Face-value:
10.0/share
52week high:
1190.10
52week low:
347.00
Technical Analysis
Stock trades at 1107.0, above its 50dma 869.08. It also trades above its 200dma 674.47. The stock remains bullish on techicals
The 52 week high is at 1190.10 and the 52week low is at 347.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-‘s median sales growth is 16.60% of last 10 years
Weakness
– Stock is trading at 3.82 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.85% for last 3 years.
-Earnings include an other income of Rs.5.76 Cr.
Competition
– The industry trades at a mean P/E of 25.0x. Kingfa Science trades at the industry’s max P/E of 308.87x. KINGFA trades at a P/E of 309.0x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. KINGFA has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by Jai Corp: a return of 73.74 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 221.25 cr compared to Rs 179.38 cr for period ended Mar 2020, a rise of 23.3%
Operating Profits reported at Rs 9.87 cr for period ended Mar 2021 vis-vis 3.99 for period ended Mar 2020 .
Operating Margins expanded 223.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.35 compared to Rs 1.36 for previous quarter ended Dec 2020 and Rs 0.53 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 627.0 cr for period ended Mar 2021 vis-vis sales of Rs 742.0 cr for the period ended Mar 2020, a fall of 18.3%. The 3 year sales cagr stood at 1.4%.
Operating margins shrank to 3.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 25.0 cr for the period ended Mar 2020, falling 400.0%.
Company reported a poor Net Profit CAGR of -41.5% 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 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 159% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is -88% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.33% vis-vis 6.55% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 18.68% vis-vis 18.45% for Dec 2020
Conclusion
– is almost debt free.
-‘s median sales growth is 16.60% of last 10 years – Stock is trading at 3.82 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.85% for last 3 years.
-Earnings include an other income of Rs.5.76 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 869.08 and is trading at 1107.0 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
