Mehabe score: 5 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Jocil is engaged in the manufacture of Stearic Acid, Fatty Acids, Soap Noodles, Toilet Soap, Glycerine and Industrial Oxygen.Site:JOCIL
Market Cap:
Rs 179 cr
Price:
202.0
Trading pe:
16.2x
Book-value:
211/share
Div yield:
1.48 %
Earning yield:
10.10%
Face-value:
10.0/share
52week high:
218.70
52week low:
139.00
Technical Analysis
Stock trades at 202.0, above its 50dma 177.34. It also trades above its 200dma 166.51. The stock remains bullish on techicals
The 52 week high is at 218.70 and the 52week low is at 139.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.96 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 30.89%
Weakness
– The company has delivered a poor sales growth of 6.19% over past five years.
– has a low return on equity of 3.80% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.2x. Pidilite Inds. trades at the industry’s max P/E of 93.26x. JOCIL trades at a P/E of 16.2x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. JOCIL has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by Jocil: a return of 14.99 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 154.9 cr compared to Rs 121.09 cr for period ended Mar 2020, a rise of 27.9%
Operating Profits reported at Rs 2.64 cr for period ended Mar 2021 vis-vis 2.1 for period ended Mar 2020 .
Operating Margins contracted -3.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.49 compared to Rs 1.86 for previous quarter ended Dec 2020 and Rs 1.61 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 565.0 cr for period ended Mar 2021 vis-vis sales of Rs 446.0 cr for the period ended Mar 2020, a healthy growth of 21.1%. The 3 year sales cagr stood at 18.3%.
Net Profit reported at Rs 14.0 cr for period ended Mar 2021 vis-vis sales of Rs 12.0 cr for the period ended Mar 2020, rising 14.3%.
Company recorded a healthy Net Profit CAGR of 51.8% 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 stock has given a return of 21% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 28% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of 15% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
-Stock is trading at 0.96 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 30.89% – The company has delivered a poor sales growth of 6.19% over past five years.
– has a low return on equity of 3.80% 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 177.34 and is trading at 202.0 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
