Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 4.
Description
IVP is engaged in the business of Organic and inorganic chemicals.Site:IVP
Market Cap:
Rs 158 cr
Price:
154.0
Trading pe:
x
Book-value:
66.1/share
Div yield:
0.00 %
Earning yield:
2.13%
Face-value:
10.0/share
52week high:
165.40
52week low:
35.00
Technical Analysis
Stock trades at 154.0, above its 50dma 120.86. It also trades above its 200dma 92.29. The stock remains bullish on techicals
The 52 week high is at 165.40 and the 52week low is at 35.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.96% over past five years.
– has a low return on equity of 2.21% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.5x. Pidilite Inds. trades at the industry’s max P/E of 95.07x. IVP trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. IVP has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 5.0%. The max 1- month return was given by IVP: a return of 30.21 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 118.05 cr compared to Rs 56.36 cr for period ended Mar 2020, a rise of 109.5%
Operating Profits reported at Rs 7.81 cr for period ended Mar 2021 vis-vis 0.02 for period ended Mar 2020 .
Operating Margins expanded 658.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.61 compared to Rs 4.2 for previous quarter ended Dec 2020 and Rs -1.8 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 290.0 cr for period ended Mar 2021 vis-vis sales of Rs 229.0 cr for the period ended Mar 2020, a healthy growth of 21.0%. The 3 year sales cagr stood at 2.4%.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs -9.0 cr for the period ended Mar 2020, rising 325.0%.
Company reported a poor Net Profit CAGR of -26.3% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -11.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 302% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 79% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.31% vis-vis 28.77% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.96% over past five years.
– has a low return on equity of 2.21% 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 120.86 and is trading at 154.0 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
