Mehabe score: 5 G Factor: 6 Piotski Score: 8 The stock has a rating . 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 6 and Piotski score of 8.
Description
Chambal Fertilisers & Chemicals is engaged in the business of production of urea and has three urea plants. Apart from manufacture of Urea, the Company also deals in other fertilisers and Agri-inputs.Site:CHAMBLFERTMain Symbol:CHAMBLFERT
Stock trades at 337.0, above its 50dma 304.35. It also trades above its 200dma 253.27. The stock remains bullish on techicals
The 52 week high is at 338.00 and the 52week low is at 133.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 45.03% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 28.61%
-Debtor days have improved from 124.87 to 33.71 days.
Weakness
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 10.2x. Natl.Fertilizer trades at the industry’s max P/E of 74.07x. CHAMBLFERT trades at a P/E of 9.54x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 8.0. CHAMBLFERT has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is -6.5%. The max 1- month return was given by Chambal Fert.: a return of 10.33 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3540.0 cr compared to Rs 3219.0 cr for period ended Jun 2020, a rise of 10.0%
Operating Profits reported at Rs 581.0 cr for period ended Jun 2021 vis-vis 621.0 for period ended Jun 2020 .
Operating Margins contracted -287.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.16 compared to Rs 10.76 for previous quarter ended Mar 2021 and Rs 7.18 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 13040.0 cr for period ended TTM vis-vis sales of Rs 12719.0 cr for the period ended Mar 2021, a growth of 2.5%. The 3 year sales cagr stood at 8.9%.
Operating margins shrank to 18.0% for period ended TTM vis-vis 19.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 1737.0 cr for period ended TTM vis-vis sales of Rs 1655.0 cr for the period ended Mar 2021, rising 4.7%.
Company recorded a healthy Net Profit CAGR of 43.3% 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 6944.0 cr for period ended Mar 2021 vis-vis Rs 827.0 cr for period ended Mar 2020
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 31.0% compared to 29.0% over the last 3 Years. – The stock has given a return of 125% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of 19% over the last 3 Years. – The compounded profit growth on a TTM basis is 17% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 8.42% vis-vis 7.05% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 16.07% vis-vis 16.9% for Mar 2021
Conclusion
– has reduced debt.
– has delivered good profit growth of 45.03% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 28.61%
-Debtor days have improved from 124.87 to 33.71 days. – might be capitalizing the interest cost
