Mehabe score: 6 G Factor: 6 Piotski Score: 8 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 8.
Description
Kothari Petrochemicals is engaged in the Manufacturers of Poly Iso Butylene.(Source : 201903 Annual Report Page No: 46) Site:KOTHARIPET Main Symbol:KOTHARIPET
Stock trades at 109.0, above its 50dma 73.44. It also trades above its 200dma 52.79. The stock remains bullish on techicals
The 52 week high is at 119.00 and the 52week low is at 21.80
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 19.63% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.59% over past five years.
Competition
– The industry trades at a mean P/E of 12.0x. DCW trades at the industry’s max P/E of 30.03x. KOTHARIPET trades at a P/E of 19.2x
– Industry’s mean G-Factor is 5.8 while the mean Piotski score is 9.0. KOTHARIPET has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 8.8%. The max 1- month return was given by Kothari Petroche: a return of 62.08 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 105.53 cr compared to Rs 62.86 cr for period ended Dec 2020, a rise of 67.9% .
vis-vis 11.37 for period ended Dec 2020 .
Operating Margins contracted -541.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 13.37 cr for period ended Dec 2021 and operating profit margin at 12.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.54 compared to Rs 1.63 for previous quarter ended Sep 2021 and Rs 1.35 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 342.0 cr for period ended TTM vis-vis sales of Rs 229.0 cr for the period ended Mar 2021, a healthy growth of 33.0%. The 3 year sales cagr stood at 4.5%.
Operating margins shrank to 14.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 32.0 cr for period ended TTM vis-vis sales of Rs 23.0 cr for the period ended Mar 2021, rising 28.1%.
Company recorded a healthy Net Profit CAGR of 38.7% 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 31.0 cr for period ended Mar 2021 vis-vis Rs 26.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 378% on a 1 Year basis vis-vis a return of 75% over the last 3 Years. – The compounded sales growth on a TTM bassis is 53% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 70% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 19.63% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.59% over past five years.
