Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 4.
Description
Peria Karamalai Tea& Produce Company is mainly engaged in the production and distribution of Tea., generation and distribution of power and investment in financial instruments.(Source : 201903 Annual Report Page No: 88)Site:PKTEA
Market Cap:
Rs 72.9 cr
Price:
236.0
Trading pe:
15.6x
Book-value:
556/share
Div yield:
0.21 %
Earning yield:
22.33%
Face-value:
10.0/share
52week high:
250.10
52week low:
89.00
Technical Analysis
Stock trades at 236.0, above its 50dma 220.17. It also trades above its 200dma 196.76. The stock remains bullish on techicals
The 52 week high is at 250.10 and the 52week low is at 89.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.42 times its book value
– is expected to give good quarter
-Promoter holding has increased by 1.60% over last quarter.
Weakness
– The company has delivered a poor sales growth of 5.15% over past five years.
– has a low return on equity of 1.11% for last 3 years.
Competition
– The industry trades at a mean P/E of 15.4x. Tata Consumer trades at the industry’s max P/E of 75.05x. PKTEA trades at a P/E of 15.6x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. PKTEA has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 15.9%. The max 1- month return was given by Mcleod Russel: a return of 49.63 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 13.16 cr compared to Rs 8.33 cr for period ended Mar 2020, a rise of 58.0%
Company reported operating profit of Rs 3.8 cr for period ended Mar 2021, operating profit margin at 28.9 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 4.88 compared to Rs 6.65 for previous quarter ended Dec 2020 and Rs -16.93 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 73.0 cr for period ended Mar 2021 vis-vis sales of Rs 39.0 cr for the period ended Mar 2020, a healthy growth of 46.6%. The 3 year sales cagr stood at 13.4%.
Operating margins expanded to 40.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, expansion of 2800.0 bps.
Net Profit reported at Rs 11.0 cr for period ended Mar 2021 vis-vis sales of Rs -4.0 cr for the period ended Mar 2020, rising 136.4%.
Company recorded a healthy Net Profit CAGR of 22.4% 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 stock has given a return of 148% 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 45% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 117% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.42 times its book value
– is expected to give good quarter
-Promoter holding has increased by 1.60% over last quarter. – The company has delivered a poor sales growth of 5.15% over past five years.
– has a low return on equity of 1.11% 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 220.17 and is trading at 236.0 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
