Mehabe score: 7 G Factor: 6 Piotski Score: 8 The stock has a rating . 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 8.
Description
Gulshan Polyols Ltd is one of the largest manufacturers of Precipitated Calcium Carbonate and Sorbitol in India. It is a market leader with a substantial market share in the respective segments [1] Site:GULPOLY Main Symbol:GULPOLY
Stock trades at 421.0, above its 50dma 335.84. It also trades above its 200dma 252.74. The stock remains bullish on techicals
The 52 week high is at 429.00 and the 52week low is at 86.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 4.73 times its book value
– has a low return on equity of 10.91% for last 3 years.
Competition
– The industry trades at a mean P/E of 29.6x. Clean Science trades at the industry’s max P/E of 124.74x. GULPOLY trades at a P/E of 20.8x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. GULPOLY has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 5.1%. The max 1- month return was given by Gulshan Polyols: a return of 40.93 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 293.0 cr compared to Rs 209.0 cr for period ended Dec 2020, a rise of 40.2% .
vis-vis 36.0 for period ended Dec 2020 .
Operating Margins contracted -527.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 35.0 cr for period ended Dec 2021 and operating profit margin at 11.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.08 compared to Rs 6.07 for previous quarter ended Sep 2021 and Rs 3.96 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1036.0 cr for period ended TTM vis-vis sales of Rs 766.0 cr for the period ended Mar 2021, a healthy growth of 26.1%. The 3 year sales cagr stood at 15.4%.
Operating margins shrank to 16.0% for period ended TTM vis-vis 17.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 95.0 cr for period ended TTM vis-vis sales of Rs 62.0 cr for the period ended Mar 2021, rising 34.7%.
Company recorded a healthy Net Profit CAGR of 65.4% 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 106.0 cr for period ended Mar 2021 vis-vis Rs 44.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 325% on a 1 Year basis vis-vis a return of 94% over the last 3 Years. – The compounded sales growth on a TTM bassis is 57% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 217% vis-vis a compounded profit growth of 52% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.22% vis-vis 0.14% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 31.41% vis-vis 31.5% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Stock is trading at 4.73 times its book value
– has a low return on equity of 10.91% for last 3 years.
