Mehabe score: 3 G Factor: 2 Piotski Score: 6 The stock has a rating SELL. 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 6. Site:KAPSTONMain Symbol:www.nseindia.com
Stock trades at 87.0, below its 50dma 89.62 and below its 200dma 93.64. The stock remains bearish on technicals
The 52 week high is at 131.35 and the 52week low is at 73.15
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
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Competition
– The industry trades at a mean P/E of 27.2x. Jubilant Ingrevia trades at the industry’s max P/E of 158.09x. KAPSTON trades at a P/E of 20.4x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. KAPSTON has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by C D S L: a return of 25.01 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 54.64 cr compared to Rs 51.48 cr for period ended Jun 2020, a rise of 6.1%
Operating Profits reported at Rs 3.09 cr for period ended Jun 2021 vis-vis 4.31 for period ended Jun 2020 .
Operating Margins contracted -271.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.1 compared to Rs 0.06 for previous quarter ended Mar 2021 and Rs 2.16 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 216.0 cr for period ended TTM vis-vis sales of Rs 213.0 cr for the period ended Mar 2021, a growth of 1.4%. The 3 year sales cagr stood at 13.7%.
Operating margins shrank to 7.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, falling 50.0%.
Company reported a poor Net Profit CAGR of -23.7% 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 15.0 cr for period ended Mar 2021 vis-vis Rs -12.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 21.0% over the last 3 Years. – The stock has given a return of -3% on a 1 Year basis vis-vis a return of -0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 22% over the last 3 Years. – The compounded profit growth on a TTM basis is -62% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Conclusion
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Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 89.62 and is trading at 87.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
