Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating 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 6.
Description
ABM International is primarily engaged in the import of plastic raw materials. The Company is also engaged in importing PVC Resin, finished leather and Urea, among others. It also trades Ethylene Vinyl Acetate (EVA), Linear low-density polyethylene (LLDPE) and Wet Blue Leather.Site:ABMINTLTD
Market Cap:
Rs 85.6 cr
Price:
72.8
Trading pe:
8.42x
Book-value:
10.9/share
Div yield:
0.00 %
Earning yield:
11.16%
Face-value:
10.0/share
52week high:
84.10
52week low:
12.00
Technical Analysis
Stock trades at 72.8, above its 50dma 62.45. It also trades above its 200dma 45.56. The stock remains bullish on techicals
The 52 week high is at 84.10 and the 52week low is at 12.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 26.15% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 3.38% over past five years.
– has a low return on equity of 7.37% for last 3 years.
Competition
– The industry trades at a mean P/E of 41.2x. 3M India trades at the industry’s max P/E of 189.17x. ABMINTLTD trades at a P/E of 8.42x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. ABMINTLTD has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 10.8%. The max 1- month return was given by Redington India: a return of 45.86 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 30.4 cr compared to Rs 19.89 cr for period ended Mar 2020, a rise of 52.8%
Company reported operating profit of Rs 1.05 cr for period ended Mar 2021, operating profit margin at 3.5 %.
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 1.21 compared to Rs 6.86 for previous quarter ended Dec 2020 and Rs -3.2 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 129.0 cr for period ended Mar 2021 vis-vis sales of Rs 98.0 cr for the period ended Mar 2020, a healthy growth of 24.0%. The 3 year sales cagr stood at 13.2%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis -2.0% for period ended Mar 2020, expansion of 1100.0 bps.
Net Profit reported at Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs -5.0 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 79.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 487% on a 1 Year basis vis-vis a return of 55% over the last 3 Years. – The compounded sales growth on a TTM bassis is 32% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 307% vis-vis a compounded profit growth of 241% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 26.15% CAGR over last 5 years – The company has delivered a poor sales growth of 3.38% over past five years.
– has a low return on equity of 7.37% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 62.45 and is trading at 72.8, thus bullish price action wise.
