Mehabe score: 3 G Factor: 4 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 4 and Piotski score of 6.
Description
Gujarat Poly Electronics Ltd is engaged in the manufacturing and trading of Ceramic Capacitors both Multi layer and Single layer.[1] Site:GUJARATPOLY Main Symbol:GUJARATPOLY
Stock trades at 45.4, below its 50dma 669.83 and below its 200dma 620.0. The stock remains bearish on technicals
The 52 week high is at 786.65 and the 52week low is at 371.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 32.50 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.37% over past five years.
-Tax rate seems low
-Debtor days have increased from 98.07 to 118.00 days.
Competition
– The industry trades at a mean P/E of 49.8x. Amber Enterp. trades at the industry’s max P/E of 97.99x. GUJARATPOLY trades at a P/E of 18.6x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 7.0. GUJARATPOLY has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 20.2%. The max 1- month return was given by Gujarat Poly: a return of 100.21 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 4.15 cr compared to Rs 3.96 cr for period ended Dec 2020, a rise of 4.8% .
vis-vis 0.43 for period ended Dec 2020 .
Operating Margins expanded 239.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.55 cr for period ended Dec 2021 and operating profit margin at 13.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.65 compared to Rs 0.57 for previous quarter ended Sep 2021 and Rs 0.49 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.59 cr for period ended TTM vis-vis sales of Rs 13.61 cr for the period ended Mar 2021, a healthy growth of 18.0%. The 3 year sales cagr stood at -9.7%.
Operating margins expanded to 13.32% for period ended TTM vis-vis 8.23% for period ended Mar 2021, expansion of 509.0 bps.
Net Profit reported at Rs 2.23 cr for period ended TTM vis-vis sales of Rs 0.99 cr for the period ended Mar 2021, rising 55.6%.
Company reported a poor Net Profit CAGR of -25.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 510% 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 47% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 574% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 40.18% vis-vis 40.18% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 32.50 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.37% over past five years.
-Tax rate seems low
-Debtor days have increased from 98.07 to 118.00 days.
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 below its 50 DMA 669.83 and is trading at 45.4. Shows a near term lack of buying interest.
