Mehabe score: 5 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
Krishana Phoschem is engaged in the Manufacturing of Fertilizers & Chemicals.Site:KRISHANA
Market Cap:
Rs 244 cr
Price:
93.4
Trading pe:
15.2x
Book-value:
50.6/share
Div yield:
0.54 %
Earning yield:
10.83%
Face-value:
10.0/share
52week high:
101.95
52week low:
39.80
Technical Analysis
Stock trades at 93.4, above its 50dma 84.59. It also trades above its 200dma 74.02. The stock remains bullish on techicals
The 52 week high is at 101.95 and the 52week low is at 39.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 36.27% CAGR over last 5 years
Weakness
– has a low return on equity of 9.84% for last 3 years.
Competition
– The industry trades at a mean P/E of 10.9x. F A C T trades at the industry’s max P/E of 30.77x. KRISHANA trades at a P/E of 15.2x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. KRISHANA has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 8.0%. The max 1- month return was given by Chambal Fert.: a return of 23.42 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 52.6 cr compared to Rs 24.61 cr for period ended Mar 2020, a rise of 113.7%
Operating Profits reported at Rs 7.94 cr for period ended Mar 2021 vis-vis 7.29 for period ended Mar 2020 .
Operating Margins contracted -1452.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.84 compared to Rs 2.53 for previous quarter ended Dec 2020 and Rs 0.49 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 189.0 cr for period ended Mar 2021 vis-vis sales of Rs 162.0 cr for the period ended Mar 2020, a healthy growth of 14.3%. The 3 year sales cagr stood at 25.3%.
Operating margins shrank to 21.0% for period ended Mar 2021 vis-vis 22.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 20.0 cr for period ended Mar 2021 vis-vis sales of Rs 14.0 cr for the period ended Mar 2020, rising 30.0%.
Company recorded a healthy Net Profit CAGR of 71.0% 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 12.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 118% on a 1 Year basis vis-vis a return of 39% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 27% over the last 3 Years. – The compounded profit growth on a TTM basis is 22% vis-vis a compounded profit growth of 61% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– has delivered good profit growth of 36.27% CAGR over last 5 years – has a low return on equity of 9.84% for last 3 years.
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 84.59 and is trading at 93.4 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
