Mehabe score: 4 G Factor: 2 Piotski Score: 6 The stock has a rating SELL. 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 6.
Description
Nath Bio-Genes (India) is engaged in the business of Production, Processing, and Marketing of Hybrid and GM Seeds.Site:NATHBIOGENMain Symbol:NATHBIOGEN
Stock trades at 362.0, below its 50dma 380.0. However it is trading above its 200dma 347.39. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 380.0.
The 52 week high is at 474.70 and the 52week low is at 221.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.12 times its book value
– has delivered good profit growth of 31.44% CAGR over last 5 years
Weakness
– Tax rate seems low
– has a low return on equity of 9.00% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.2x. Jubilant Ingrevia trades at the industry’s max P/E of 157.8x. NATHBIOGEN trades at a P/E of 11.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. NATHBIOGEN has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by C D S L: a return of 18.19 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 215.0 cr compared to Rs 194.0 cr for period ended Jun 2020, a rise of 10.8%
Operating Profits reported at Rs 49.0 cr for period ended Jun 2021 vis-vis 44.0 for period ended Jun 2020 .
Operating Margins expanded 11.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 23.63 compared to Rs 3.76 for previous quarter ended Mar 2021 and Rs 21.71 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 331.0 cr for period ended TTM vis-vis sales of Rs 271.0 cr for the period ended Mar 2021, a healthy growth of 18.1%. The 3 year sales cagr stood at 17.1%.
Operating margins shrank to 22.0% for period ended TTM vis-vis 25.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 59.0 cr for period ended TTM vis-vis sales of Rs 56.0 cr for the period ended Mar 2021, rising 5.1%.
Company recorded a healthy Net Profit CAGR of 15.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 10.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 9% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 5% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.18% vis-vis 0.18% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 47.92% vis-vis 48.1% for Mar 2021
Conclusion
– Stock is trading at 1.12 times its book value
– has delivered good profit growth of 31.44% CAGR over last 5 years – Tax rate seems low
– has a low return on equity of 9.00% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 380.0 and is trading at 362.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
