Mehabe score: 6 G Factor: 6 Piotski Score: 9 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 9.
Description
INEOS Styrolution India is engaged in the business of ABS, SAN and Polystyrene.Site:INEOSSTYROMain Symbol:INEOSSTYRO
Stock trades at 1426.0, above its 50dma 1375.27. It also trades above its 200dma 1061.73. The stock remains bullish on techicals
The 52 week high is at 1570.00 and the 52week low is at 483.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 34.44% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 0.59% over past five years.
-Debtor days have increased from 49.81 to 68.45 days.
Competition
– The industry trades at a mean P/E of 9.3x. DCW trades at the industry’s max P/E of 278.59x. INEOSSTYRO trades at a P/E of 8.95x
– Industry’s mean G-Factor is 6.4 while the mean Piotski score is 9.0. INEOSSTYRO has a G-Factor of 6 and Piotski scoreof 9.
– Average 1 month return for industry is 3.1%. The max 1- month return was given by Savita Oil Tech: a return of 14.2 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 637.0 cr compared to Rs 359.0 cr for period ended Mar 2020, a rise of 77.4%
Operating Profits reported at Rs 227.0 cr for period ended Mar 2021 vis-vis 22.0 for period ended Mar 2020 .
Operating Margins expanded 2950.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 91.78 compared to Rs 58.57 for previous quarter ended Dec 2020 and Rs 2.53 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1631.0 cr for period ended Mar 2021 vis-vis sales of Rs 1579.0 cr for the period ended Mar 2020, a growth of 3.2%. The 3 year sales cagr stood at -4.9%.
Operating margins expanded to 25.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 2100.0 bps.
Net Profit reported at Rs 280.0 cr for period ended Mar 2021 vis-vis sales of Rs -10.0 cr for the period ended Mar 2020, rising 103.6%.
Company recorded a healthy Net Profit CAGR of 61.9% 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 282.0 cr for period ended Mar 2021 vis-vis Rs 166.0 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 37.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 73% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 964% vis-vis a compounded profit growth of 61% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.48% vis-vis 0.48% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 19.88% vis-vis 18.9% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 34.44% CAGR over last 5 years – The company has delivered a poor sales growth of 0.59% over past five years.
-Debtor days have increased from 49.81 to 68.45 days.
