Mehabe score: 8 G Factor: 5 Piotski Score: 7 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 7.
Description
KIOCL is primarily engaged in the business of Iron Ore Mining, Beneficiation and Production of high-quality Pellets. Recently the Company has diversified into Provision of Operating and Maintenance Services pertaining to its various core areas of expertise.Site:KIOCLMain Symbol:KIOCL
Stock trades at 291.0, above its 50dma 261.88. It also trades above its 200dma 194.45. The stock remains bullish on techicals
The 52 week high is at 312.00 and the 52week low is at 106.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 41.87% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 69.24%
Weakness
– Stock is trading at 8.90 times its book value
– has a low return on equity of 7.51% for last 3 years.
-Debtor days have increased from 24.20 to 37.15 days.
Competition
– The industry trades at a mean P/E of 17.5x. KIOCL trades at the industry’s max P/E of 34.99x. KIOCL trades at a P/E of 35.0x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 9.0. KIOCL has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 11.3%. The max 1- month return was given by Indian Metals: a return of 47.29 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1042.0 cr compared to Rs 437.0 cr for period ended Jun 2020, a rise of 138.4%
Operating Profits reported at Rs 288.0 cr for period ended Jun 2021 vis-vis 4.0 for period ended Jun 2020 .
Operating Margins expanded 2672.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.55 compared to Rs 3.19 for previous quarter ended Mar 2021 and Rs 0.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2989.0 cr for period ended TTM vis-vis sales of Rs 2384.0 cr for the period ended Mar 2021, a healthy growth of 20.2%. The 3 year sales cagr stood at 16.5%.
Operating margins expanded to 21.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs 505.0 cr for period ended TTM vis-vis sales of Rs 301.0 cr for the period ended Mar 2021, rising 40.4%.
Company recorded a healthy Net Profit CAGR of 65.2% 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 111.0 cr for period ended Mar 2021 vis-vis Rs -22.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 68% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 1199% vis-vis a compounded profit growth of 70% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 0.82% vis-vis 0.82% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 41.87% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 69.24% – Stock is trading at 8.90 times its book value
– has a low return on equity of 7.51% for last 3 years.
-Debtor days have increased from 24.20 to 37.15 days.
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 261.88 and is trading at 291.0, thus bullish price action wise.
