Mehabe score: 3 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & 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 3 and Piotski score of 7.
Description
GP Petroleums Ltd is a leading lubricant player, specializes in industrial & automotive lubricants, process oils, transformer oils, greases and other specialties under the brand name IPOL in India and overseas market.Site:GULFPETRO
Market Cap:
Rs 363 cr
Price:
71.2
Trading pe:
25.5x
Book-value:
44.1/share
Div yield:
1.05 %
Earning yield:
5.27%
Face-value:
5.00/share
52week high:
77.60
52week low:
29.20
Technical Analysis
Stock trades at 71.2, above its 50dma 50.18. It also trades above its 200dma 44.34. The stock remains bullish on techicals
The 52 week high is at 77.60 and the 52week low is at 29.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has been maintaining a healthy dividend payout of 23.82%
Weakness
– The company has delivered a poor sales growth of 3.99% over past five years.
– has a low return on equity of 7.95% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.2x. Pidilite Inds. trades at the industry’s max P/E of 93.26x. GULFPETRO trades at a P/E of 25.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. GULFPETRO has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 11.2%. The max 1- month return was given by GP Petroleums: a return of 60.11 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 192.68 cr compared to Rs 92.18 cr for period ended Mar 2020, a rise of 109.0%
Operating Profits reported at Rs 5.96 cr for period ended Mar 2021 vis-vis 3.5 for period ended Mar 2020 .
Operating Margins contracted -70.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.95 compared to Rs 1.48 for previous quarter ended Dec 2020 and Rs 0.27 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 610.0 cr for period ended Mar 2021 vis-vis sales of Rs 495.0 cr for the period ended Mar 2020, a healthy growth of 18.9%. The 3 year sales cagr stood at 5.5%.
Operating margins shrank to 4.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 18.0 cr for period ended Mar 2021 vis-vis sales of Rs 16.0 cr for the period ended Mar 2020, rising 11.1%.
Company recorded a Net Profit CAGR of 4.0% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 54% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -27% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.82% vis-vis 26.82% for Dec 2020
Conclusion
– has reduced debt.
– has been maintaining a healthy dividend payout of 23.82% – The company has delivered a poor sales growth of 3.99% over past five years.
– has a low return on equity of 7.95% for last 3 years.
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 50.18 and is trading at 71.2 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
