Mehabe score: 5 G Factor: 3 Piotski Score: 8 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 8.
Description
Poddar Pigments is engaged in a manufacturer of Color & Additive Master batches for dope dyeing of man-made fibers, various plastic applications.Site:PODDARMENT
Market Cap:
Rs 256 cr
Price:
241.0
Trading pe:
13.2x
Book-value:
200/share
Div yield:
0.00 %
Earning yield:
11.04%
Face-value:
10.0/share
52week high:
265.00
52week low:
150.00
Technical Analysis
Stock trades at 241.0, above its 50dma 225.53. It also trades above its 200dma 201.88. The stock remains bullish on techicals
The 52 week high is at 265.00 and the 52week low is at 150.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 2.30% over past five years.
– has a low return on equity of 9.42% for last 3 years.
-Dividend payout has been low at 12.89% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 28.0x. Pidilite Inds. trades at the industry’s max P/E of 95.87x. PODDARMENT trades at a P/E of 13.2x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. PODDARMENT has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 2.4%. The max 1- month return was given by Godrej Industrie: a return of 7.8 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 81.0 cr compared to Rs 77.0 cr for period ended Mar 2020, a rise of 5.2%
Operating Profits reported at Rs 13.0 cr for period ended Mar 2021 vis-vis 7.0 for period ended Mar 2020 .
Operating Margins expanded 695.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.71 compared to Rs 7.36 for previous quarter ended Dec 2020 and Rs 5.61 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 261.0 cr for period ended TTM vis-vis sales of Rs 357.0 cr for the period ended Mar 2020, a fall of 36.8%. The 3 year sales cagr stood at -7.9%.
Operating margins expanded to 11.0% for period ended TTM vis-vis 8.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 24.0 cr for period ended TTM vis-vis sales of Rs 21.0 cr for the period ended Mar 2020, rising 12.5%.
Company recorded a Net Profit CAGR of 8.1% 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 31.0 cr for period ended Mar 2020 vis-vis Rs 22.0 cr for period ended Mar 2019
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 53% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -31% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.96% vis-vis 0.96% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.31% vis-vis 36.31% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 2.30% over past five years.
– has a low return on equity of 9.42% for last 3 years.
-Dividend payout has been low at 12.89% of profits over 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 225.53 and is trading at 241.0 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
