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
Engaged in manufacturing and supply of Steel wires and plastic films which find its application in industries like oil & gas, power, environment, civil, energy, automobile, infrastructure etc. All our manufacturing divisions are situated in a single premise at Ratlam.
We are also engaged in power generation through 2 wind farms of 0.80 MW each.Site:DPWIRES
Market Cap:
Rs 232 cr
Price:
171.0
Trading pe:
11.2x
Book-value:
78.7/share
Div yield:
0.00 %
Earning yield:
12.62%
Face-value:
10.0/share
52week high:
184.75
52week low:
49.60
Technical Analysis
Stock trades at 171.0, above its 50dma 140.05. It also trades above its 200dma 107.33. The stock remains bullish on techicals
The 52 week high is at 184.75 and the 52week low is at 49.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 58.32% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 16.4x. Apollo Tricoat trades at the industry’s max P/E of 43.05x. DPWIRES trades at a P/E of 11.2x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 8.0. DPWIRES has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 14.6%. The max 1- month return was given by Godawari Power: a return of 41.04 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 184.07 cr compared to Rs 80.39 cr for period ended Mar 2020, a rise of 129.0%
Operating Profits reported at Rs 12.05 cr for period ended Mar 2021 vis-vis 6.97 for period ended Mar 2020 .
Operating Margins contracted -212.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.12 compared to Rs 5.58 for previous quarter ended Dec 2020 and Rs 3.68 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 467.0 cr for period ended Mar 2021 vis-vis sales of Rs 284.0 cr for the period ended Mar 2020, a healthy growth of 39.2%. The 3 year sales cagr stood at 31.2%.
Operating margins shrank to 7.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 24.0 cr for period ended Mar 2021 vis-vis sales of Rs 17.0 cr for the period ended Mar 2020, rising 29.2%.
Company recorded a healthy Net Profit CAGR of 33.9% over the last 3 years
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 stock has given a return of 213% on a 1 Year basis vis-vis a return of 32% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 41% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 58.32% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
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 140.05 and is trading at 171.0, thus bullish price action wise.
