Mehabe score: 6 G Factor: 6 Piotski Score: 7 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 6 and Piotski score of 7.
Description
Madhusudan Industries Limited (MIL) was incorporated on 27th August 1945 under the name ”Madhusudan Vegetable Products Company Limited”. Site:MADHUDIN Main Symbol:MADHUDIN
Stock trades at 37.0, above its 50dma 30.6. It also trades above its 200dma 23.43. The stock remains bullish on techicals
The 52 week high is at 42.50 and the 52week low is at 8.84
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.84 times its book value
Weakness
– The company has delivered a poor sales growth of -0.43% over past five years.
– has a low return on equity of -1.20% for last 3 years.
-Earnings include an other income of Rs.7.37 Cr.
-Promoter holding has decreased over last 3 years: -7.66%
Competition
– The industry trades at a mean P/E of 28.5x. Indian Energy Ex trades at the industry’s max P/E of 87.72x. MADHUDIN trades at a P/E of 3.61x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. MADHUDIN has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is -3.2%. The max 1- month return was given by Madhusudan Inds.: a return of 25.59 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.27 cr compared to Rs 0.22 cr for period ended Dec 2020, a rise of 22.7% .
vis-vis 0.17 for period ended Dec 2020 .
Operating Margins contracted -4764.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.08 cr for period ended Dec 2021 and operating profit margin at 29.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs -0.89 compared to Rs 2.81 for previous quarter ended Sep 2021 and Rs 3.52 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.06 cr for period ended TTM vis-vis sales of Rs 0.91 cr for the period ended Mar 2021, a healthy growth of 14.2%. The 3 year sales cagr stood at -2.7%.
Operating margins expanded to -0.94% for period ended TTM vis-vis -4.4% for period ended Mar 2021, expansion of 346.0 bps.
Net Profit reported at Rs 3.15 cr for period ended TTM vis-vis sales of Rs 3.58 cr for the period ended Mar 2021, falling 13.7%.
Company recorded a healthy Net Profit CAGR of 164.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.44 cr for period ended Mar 2021 vis-vis Rs -0.65 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 1.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 243% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 6800% vis-vis a compounded profit growth of -35% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 46.73% vis-vis 45.22% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.84 times its book value – The company has delivered a poor sales growth of -0.43% over past five years.
– has a low return on equity of -1.20% for last 3 years.
-Earnings include an other income of Rs.7.37 Cr.
-Promoter holding has decreased over last 3 years: -7.66%
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 30.6 and is trading at 37.0, thus bullish price action wise.
