Mehabe score: 7 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
Dynemic Products is engaged in one of the largest global manufacturer & exporter of food colours in the world, offering wide range of Food Colours, Lake Colours, Blended Colours,US-FDA certified FD&C Colours & Dye Intermediates from India.
Main Points
Food Color
Food colors are added to food and drinks to create a specific appearance. The global food colors market is primarily driven by the increasing demand from the bakery & confectionery and the beverages industry. The high demand for flavored drinks, fruit juices, and nutritional drinks drives the global food color market. For commercial adoption, synthetic food colors are in high demand because of the high stability under light, cheap in cost, and less microbial contamination. However, natural food colors are expensive in comparison to synthetic ones.Site:DYNPRO
Market Cap:
Rs 568 cr
Price:
502.0
Trading pe:
20.0x
Book-value:
138/share
Div yield:
0.30 %
Earning yield:
5.94%
Face-value:
10.0/share
52week high:
588.55
52week low:
112.50
Technical Analysis
Stock trades at 502.0, above its 50dma 491.64. It also trades above its 200dma 360.35. The stock remains bullish on techicals
The 52 week high is at 588.55 and the 52week low is at 112.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 9.66% over past five years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -4.27%
Competition
– The industry trades at a mean P/E of 23.1x. Atul trades at the industry’s max P/E of 38.82x. DYNPRO trades at a P/E of 20.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. DYNPRO has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 6.2%. The max 1- month return was given by Kiri Industries: a return of 36.59 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 206.0 cr for period ended Mar 2021 vis-vis sales of Rs 182.0 cr for the period ended Mar 2020, a healthy growth of 11.7%. The 3 year sales cagr stood at 7.9%.
Operating margins expanded to 21.0% for period ended Mar 2021 vis-vis 20.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 28.0 cr for period ended Mar 2021 vis-vis sales of Rs 24.0 cr for the period ended Mar 2020, rising 14.3%.
Company recorded a healthy Net Profit CAGR of 15.9% 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 48.0 cr for period ended Mar 2021 vis-vis Rs 7.0 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 20.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 309% on a 1 Year basis vis-vis a return of 43% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 18% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.61% vis-vis 0.6% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 63.6% vis-vis 63.59% for Dec 2020
Conclusion
– – The company has delivered a poor sales growth of 9.66% over past five years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -4.27%
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 491.64 and is trading at 502.0, thus bullish price action wise.
