Mehabe score: 4 G Factor: 3 Piotski Score: 4 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 4.
Description
Madras Fertilizers is engaged in the manufacture of Urea and Complex Fertilizers. It is also engaged in manufacturing Bio-fertilizers and trading eco-friendly Agro Chemicals and City Compost under the brand name Vijay.Site:MADRASFERT
Market Cap:
Rs 550 cr
Price:
34.2
Trading pe:
192.0x
Book-value:
-39.2/share
Div yield:
0.00 %
Earning yield:
3.21%
Face-value:
10.0/share
52week high:
35.60
52week low:
15.25
Technical Analysis
Stock trades at 34.2, above its 50dma 29.39. It also trades above its 200dma 24.9. The stock remains bullish on techicals
The 52 week high is at 35.60 and the 52week low is at 15.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.04% over past five years.
-Contingent liabilities of Rs.218.09 Cr.
Competition
– The industry trades at a mean P/E of 11.8x. Madras Fertilize trades at the industry’s max P/E of 191.69x. MADRASFERT trades at a P/E of 192.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. MADRASFERT has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 4.3%. The max 1- month return was given by Madras Fertilize: a return of 17.15 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 460.0 cr compared to Rs 445.0 cr for period ended Mar 2020, a rise of 3.4%
Operating Profits reported at Rs 62.0 cr for period ended Mar 2021 vis-vis 22.0 for period ended Mar 2020 .
Operating Margins expanded 853.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.65 compared to Rs 0.37 for previous quarter ended Dec 2020 and Rs 0.43 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1532.0 cr for period ended Mar 2021 vis-vis sales of Rs 1274.0 cr for the period ended Mar 2020, a healthy growth of 16.8%. The 3 year sales cagr stood at -1.8%.
Operating margins expanded to 8.0% for period ended Mar 2021 vis-vis -2.0% for period ended Mar 2020, expansion of 1000.0 bps.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs -135.0 cr for the period ended Mar 2020, rising 0%.
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 stock has given a return of 69% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 20% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 102% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.04% over past five years.
-Contingent liabilities of Rs.218.09 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 29.39 and is trading at 34.2 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
