Mehabe score: 3 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
DIC India is one of the largest companies in the Indian publishing and packaging industry segment, serving top-of-the-line newspapers, magazines, packaging and printing establishments in the country.Site:DICIND
Market Cap:
Rs 451 cr
Price:
490.0
Trading pe:
43.0x
Book-value:
413/share
Div yield:
1.22 %
Earning yield:
4.17%
Face-value:
10.0/share
52week high:
530.00
52week low:
291.00
Technical Analysis
Stock trades at 490.0, above its 50dma 424.44. It also trades above its 200dma 394.24. The stock remains bullish on techicals
The 52 week high is at 530.00 and the 52week low is at 291.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.19 times its book value
Weakness
– The company has delivered a poor sales growth of -4.09% over past five years.
– has a low return on equity of 2.15% for last 3 years.
-Earnings include an other income of Rs.104.97 Cr.
Competition
– The industry trades at a mean P/E of 28.4x. Pidilite Inds. trades at the industry’s max P/E of 95.74x. DICIND trades at a P/E of 43.0x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. DICIND has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 6.5%. The max 1- month return was given by DIC India: a return of 24.2 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 173.43 cr compared to Rs 173.31 cr for period ended Mar 2020, a rise of 0.1%
Operating Profits reported at Rs 5.82 cr for period ended Mar 2021 vis-vis 6.17 for period ended Mar 2020 .
Operating Margins contracted -20.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.91 compared to Rs 5.52 for previous quarter ended Dec 2020 and Rs 2.63 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 608.0 cr for period ended TTM vis-vis sales of Rs 608.0 cr for the period ended Dec 2020, The 3 year sales cagr stood at -10.1%.
Net Profit reported at Rs 88.0 cr for period ended TTM vis-vis sales of Rs 86.0 cr for the period ended Dec 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 60% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -23% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -43% vis-vis a compounded profit growth of 178% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.24% vis-vis 28.24% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.19 times its book value – The company has delivered a poor sales growth of -4.09% over past five years.
– has a low return on equity of 2.15% for last 3 years.
-Earnings include an other income of Rs.104.97 Cr.
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 424.44 and is trading at 490.0 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
