Mehabe score: 5 G Factor: 1 Piotski Score: 5 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 1 and Piotski score of 5.
Description
Rushil Decor Ltd is primarily engaged in manufacturing and sale of Laminate Sheets, Medium Density Fibre Board, Prelaminated Medium Density Fibre Board boards, Polyvinyl Chloride (PVC) Board and Particle Board.[1]Site:RUSHILMain Symbol:RUSHIL
Stock trades at 290.0, above its 50dma 263.72. It also trades above its 200dma 229.3. The stock remains bullish on techicals
The 52 week high is at 328.70 and the 52week low is at 71.00
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 2.48% over past five years.
– has a low return on equity of 7.66% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 5.21% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 26.5x. Affle India trades at the industry’s max P/E of 93.62x. RUSHIL trades at a P/E of 59.9x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. RUSHIL has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 12.8%. The max 1- month return was given by Netwrk.18 Media: a return of 48.76 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 171.32 cr compared to Rs 95.09 cr for period ended Sep 2020, a rise of 80.2%
Operating Profits reported at Rs 21.9 cr for period ended Sep 2021 vis-vis 13.05 for period ended Sep 2020 .
Operating Margins contracted -94.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 3.91 compared to Rs -3.86 for previous quarter ended Jun 2021 and Rs 3.43 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 454.0 cr for period ended TTM vis-vis sales of Rs 335.0 cr for the period ended Mar 2021, a healthy growth of 26.2%. The 3 year sales cagr stood at 9.7%.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 14.0 cr for the period ended Mar 2021, falling 27.3%.
Company reported a poor Net Profit CAGR of -7.7% 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 77.0 cr for period ended Mar 2021 vis-vis Rs 47.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 220% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 48% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is -15% vis-vis a compounded profit growth of -26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 5.1% vis-vis 5.3% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 39.87% vis-vis 39.67% for Jun 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.48% over past five years.
– has a low return on equity of 7.66% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 5.21% 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 263.72 and is trading at 290.0 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
