Mehabe score: 5 G Factor: 5 Piotski Score: 9 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 5 and Piotski score of 9.
Description
DCW is one of the multi-product multi-location & heavy chemical manufacturing Company.(Source : 201903 Annual Report Page No:67)
Main Points
DCW is the sole manufacturer of Chlorinated Polyvinyl Chloride (C-PVC) and stands to benefit of the Government’s recently announced Anti-Dumping Duty on unfairly subsidized imports of C-PVC.Site:DCWMain Symbol:DCW
Stock trades at 40.8, above its 50dma 38.5. It also trades above its 200dma 29.34. The stock remains bullish on techicals
The 52 week high is at 44.90 and the 52week low is at 10.40
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 3.00% over past five years.
– has a low return on equity of -1.31% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 8.8x. DCW trades at the industry’s max P/E of 58.95x. DCW trades at a P/E of 59.0x
– Industry’s mean G-Factor is 6.4 while the mean Piotski score is 9.0. DCW has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Dhunseri Vent.: a return of 31.06 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 521.0 cr compared to Rs 285.0 cr for period ended Jun 2020, a rise of 82.8%
Operating Profits reported at Rs 57.0 cr for period ended Jun 2021 vis-vis 33.0 for period ended Jun 2020 .
Operating Margins contracted -63.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.51 compared to Rs 0.25 for previous quarter ended Mar 2021 and Rs -0.38 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1700.0 cr for period ended TTM vis-vis sales of Rs 1464.0 cr for the period ended Mar 2021, a healthy growth of 13.9%. The 3 year sales cagr stood at 7.9%.
Net Profit reported at Rs 27.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 218.0 cr for period ended Mar 2021 vis-vis Rs 170.0 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 1.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 274% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is 36% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 149% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 6.08% vis-vis 5.98% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 47.14% vis-vis 47.24% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.00% over past five years.
– has a low return on equity of -1.31% for last 3 years.
-‘s cost of borrowing seems high
