Mehabe score: 7 G Factor: 6 Piotski Score: 7 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 6 and Piotski score of 7.
Description
GRP is engaged mainly in manufacturing of Reclaim Rubber. Its other businesses include Power generation from Windmill, Manufacturing of Engineering Plastics, Custom Die Forms and Polymer Composite Products.Site:GRPLTDMain Symbol:GRPLTD
Stock trades at 960.0, above its 50dma 953.46. It also trades above its 200dma 911.87. The stock remains bullish on techicals
The 52 week high is at 1180.00 and the 52week low is at 645.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.97 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 21.50%
Weakness
– The company has delivered a poor sales growth of -2.35% over past five years.
– has a low return on equity of 2.34% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 16.9x. Elgi Rubber Co trades at the industry’s max P/E of 27.88x. GRPLTD trades at a P/E of 19.6x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 8.0. GRPLTD has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is -1.6%. The max 1- month return was given by Rishiroop: a return of 14.04 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 100.7 cr compared to Rs 75.15 cr for period ended Sep 2020, a rise of 34.0%
Operating Profits reported at Rs 5.45 cr for period ended Sep 2021 vis-vis 5.25 for period ended Sep 2020 .
Operating Margins contracted -157.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 25.28 compared to Rs -5.4 for previous quarter ended Jun 2021 and Rs 6.75 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 357.0 cr for period ended TTM vis-vis sales of Rs 280.0 cr for the period ended Mar 2021, a healthy growth of 21.6%.
Operating margins expanded to 7.0% for period ended TTM vis-vis 6.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 9.0 cr for period ended TTM vis-vis sales of Rs 2.0 cr for the period ended Mar 2021, rising 77.8%.
Company recorded a healthy Net Profit CAGR of 21.6% 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 25.0 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 1.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 24% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 197% vis-vis a compounded profit growth of 43% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 58.29% vis-vis 58.26% for Jun 2021
Conclusion
– Stock is trading at 0.97 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 21.50% – The company has delivered a poor sales growth of -2.35% over past five years.
– has a low return on equity of 2.34% for last 3 years.
– might be capitalizing the interest cost
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 953.46 and is trading at 960.0, thus bullish price action wise.
