Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
Goa Carbon is the second largest manufacturer of Calcined Petroleum Coke in the country with the turnover touching Rs. 4,200 million and has throughout been among the leading suppliers of CPC to aluminium smelters, graphite electrode and titanium dioxide manufacturers as well as other users in the metallurgical and chemical industries.(Source : 201903 Annual Report Page No: 2)Site:GOACARBON
Market Cap:
Rs 394 cr
Price:
431.0
Trading pe:
x
Book-value:
75.5/share
Div yield:
0.00 %
Earning yield:
-1.60%
Face-value:
10.0/share
52week high:
461.00
52week low:
185.40
Technical Analysis
Stock trades at 431.0, above its 50dma 338.9. It also trades above its 200dma 290.81. The stock remains bullish on techicals
The 52 week high is at 461.00 and the 52week low is at 185.40
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 5.71 times its book value
– has low interest coverage ratio.
– has a low return on equity of 5.90% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 27.4x. Pidilite Inds. trades at the industry’s max P/E of 95.78x. GOACARBON trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. GOACARBON has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Goa Carbon: a return of 39.6 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 127.95 cr compared to Rs 69.26 cr for period ended Mar 2020, a rise of 84.7%
Company reported operating profit of Rs 9.33 cr for period ended Mar 2021, operating profit margin at 7.3 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 7.21 compared to Rs -1.43 for previous quarter ended Dec 2020 and Rs -5.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 353.0 cr for period ended Mar 2021 vis-vis sales of Rs 417.0 cr for the period ended Mar 2020, a fall of 18.1%. The 3 year sales cagr stood at -15.1%.
Operating margins expanded to 2.0% for period ended Mar 2021 vis-vis -4.0% for period ended Mar 2020, expansion of 600.0 bps.
Net Profit reported at Rs -5.0 cr for period ended Mar 2021 vis-vis sales of Rs -28.0 cr for the period ended Mar 2020, rising 0%.
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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -31.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -38% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 49% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 40.27% vis-vis 40.27% for Dec 2020
Conclusion
– – Stock is trading at 5.71 times its book value
– has low interest coverage ratio.
– has a low return on equity of 5.90% for last 3 years.
-‘s cost of borrowing seems high
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 338.9 and is trading at 431.0, thus bullish price action wise.
