Mehabe score: 5 G Factor: 3 Piotski Score: 5 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 5.
Description
IFGL Refractories is primarily engaged in the business of manufacturing, trading and selling of Refractory items and its related equipment and accessories used in Steel plants.Site:IFGLEXPOR
Market Cap:
Rs 1,372 cr
Price:
381.0
Trading pe:
20.9x
Book-value:
247/share
Div yield:
0.66 %
Earning yield:
8.56%
Face-value:
10.0/share
52week high:
432.00
52week low:
104.10
Technical Analysis
Stock trades at 381.0, above its 50dma 347.51. It also trades above its 200dma 261.92. The stock remains bullish on techicals
The 52 week high is at 432.00 and the 52week low is at 104.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 39.70%
Weakness
– has a low return on equity of 6.05% for last 3 years.
Competition
– The industry trades at a mean P/E of 28.1x. Orient Refrac. trades at the industry’s max P/E of 51.5x. IFGLEXPOR trades at a P/E of 20.9x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. IFGLEXPOR has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 1.4%. The max 1- month return was given by Raasi Refractor: a return of 8.46 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1022.0 cr for period ended Mar 2021 vis-vis sales of Rs 917.0 cr for the period ended Mar 2020, a healthy growth of 10.3%. The 3 year sales cagr stood at 7.0%.
Operating margins expanded to 15.0% for period ended Mar 2021 vis-vis 10.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 66.0 cr for period ended Mar 2021 vis-vis sales of Rs 19.0 cr for the period ended Mar 2020, rising 71.2%.
Company recorded a healthy Net Profit CAGR of 12.0% 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 8.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 219% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 115% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.01% vis-vis 0.0% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 14.39% vis-vis 10.89% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 39.70% – has a low return on equity of 6.05% for last 3 years.
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 347.51 and is trading at 381.0 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
