Mehabe score: 3 G Factor: 5 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 5 and Piotski score of 8.
Description
Dhunseri Tea & Industries Ltd is engaged in cultivation, manufacture and sale of tea through its estates located in Assam, India and parts of Africa.[1]Site:DTILMain Symbol:DHUNTEAIND
Stock trades at 278.0, below its 50dma 287.42. However it is trading above its 200dma 246.6. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 287.42.
The 52 week high is at 405.20 and the 52week low is at 151.97
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.34 times its book value
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 6.61% over past five years.
– has a low return on equity of 2.68% for last 3 years.
-Earnings include an other income of Rs.27.44 Cr.
-Dividend payout has been low at 8.76% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 14.9x. Tata Consumer trades at the industry’s max P/E of 99.35x. DTIL trades at a P/E of 5.38x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 9.0. DTIL has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is -2.1%. The max 1- month return was given by Tata Consumer: a return of 2.38 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 82.0 cr compared to Rs 63.0 cr for period ended Jun 2020, a rise of 30.2%
Operating Profits reported at Rs 22.0 cr for period ended Jun 2021 vis-vis 18.0 for period ended Jun 2020 .
Operating Margins contracted -174.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 24.76 compared to Rs -23.47 for previous quarter ended Mar 2021 and Rs 14.23 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 396.0 cr for period ended TTM vis-vis sales of Rs 377.0 cr for the period ended Mar 2021, a growth of 4.8%. The 3 year sales cagr stood at 6.9%.
Operating margins shrank to 12.0% for period ended TTM vis-vis 17.0% for period ended Mar 2021, contraction of 500.0 bps.
Net Profit reported at Rs 42.0 cr for period ended TTM vis-vis sales of Rs 31.0 cr for the period ended Mar 2021, rising 26.2%.
Company recorded a healthy Net Profit CAGR of 14.5% 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 46.0 cr for period ended Mar 2021 vis-vis Rs 6.0 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 5.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 48% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 34% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 6965% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.02% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 29.04% vis-vis 29.06% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.34 times its book value
– is expected to give good quarter – The company has delivered a poor sales growth of 6.61% over past five years.
– has a low return on equity of 2.68% for last 3 years.
-Earnings include an other income of Rs.27.44 Cr.
-Dividend payout has been low at 8.76% of profits over last 3 years
