Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6.
Description
Jayant Agro Organics is mainly engaged in manufacturing and trading of castor oil and its derivatives such as oleo chemicals.Site:JAYAGROGNMain Symbol:JAYAGROGN
Stock trades at 291.0, above its 50dma 219.95. It also trades above its 200dma 164.9. The stock remains bullish on techicals
The 52 week high is at 307.10 and the 52week low is at 84.10
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 3.57% over past five years.
– has a low return on equity of 6.79% for last 3 years.
-Contingent liabilities of Rs.400.89 Cr.
-Dividend payout has been low at 5.67% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 29.4x. Pidilite Inds. trades at the industry’s max P/E of 102.37x. JAYAGROGN trades at a P/E of 18.2x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. JAYAGROGN has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 17.7%. The max 1- month return was given by Gujarat Fluoroch: a return of 52.36 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 642.0 cr compared to Rs 262.0 cr for period ended Jun 2020, a rise of 145.0%
Operating Profits reported at Rs 38.0 cr for period ended Jun 2021 vis-vis 17.0 for period ended Jun 2020 .
Operating Margins contracted -57.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 7.01 compared to Rs 7.7 for previous quarter ended Mar 2021 and Rs 2.15 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2019.0 cr for period ended TTM vis-vis sales of Rs 1639.0 cr for the period ended Mar 2021, a healthy growth of 18.8%. The 3 year sales cagr stood at -6.1%.
Net Profit reported at Rs 63.0 cr for period ended TTM vis-vis sales of Rs 48.0 cr for the period ended Mar 2021, rising 23.8%.
Company recorded a Net Profit CAGR of 4.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 14.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 236% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -35% vis-vis a compounded sales growth of -14% over the last 3 Years. – The compounded profit growth on a TTM basis is 249% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.01% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 33.52% vis-vis 33.57% for Mar 2021
Conclusion
– – The company has delivered a poor sales growth of 3.57% over past five years.
– has a low return on equity of 6.79% for last 3 years.
-Contingent liabilities of Rs.400.89 Cr.
-Dividend payout has been low at 5.67% of profits over last 3 years
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 219.95 and is trading at 291.0, thus bullish price action wise.
