Mehabe score: 5 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Madhya Bharat Agro Products Limited (MBAPL) is an India-based fertilizer manufacturer.Site:MBAPL
Market Cap:
Rs 260 cr
Price:
119.0
Trading pe:
12.9x
Book-value:
59.5/share
Div yield:
0.42 %
Earning yield:
11.43%
Face-value:
10.0/share
52week high:
121.95
52week low:
55.80
Technical Analysis
Stock trades at 119.0, above its 50dma 88.16. It also trades above its 200dma 77.27. The stock remains bullish on techicals
The 52 week high is at 121.95 and the 52week low is at 55.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 69.67 to 54.58 days.
Weakness
– has a low return on equity of 12.71% for last 3 years.
Competition
– The industry trades at a mean P/E of 11.6x. F A C T trades at the industry’s max P/E of 30.59x. MBAPL trades at a P/E of 12.9x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. MBAPL has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by M B Agro Prod.: a return of 44.06 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 49.6 cr compared to Rs 29.07 cr for period ended Mar 2020, a rise of 70.6%
Operating Profits reported at Rs 6.71 cr for period ended Mar 2021 vis-vis 8.72 for period ended Mar 2020 .
Operating Margins contracted -1646.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.14 compared to Rs 1.65 for previous quarter ended Dec 2020 and Rs 1.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 186.0 cr for period ended Mar 2021 vis-vis sales of Rs 129.0 cr for the period ended Mar 2020, a healthy growth of 30.6%. The 3 year sales cagr stood at 27.4%.
Operating margins shrank to 22.0% for period ended Mar 2021 vis-vis 27.0% for period ended Mar 2020, contraction of 500.0 bps.
Net Profit reported at Rs 20.0 cr for period ended Mar 2021 vis-vis sales of Rs 15.0 cr for the period ended Mar 2020, rising 25.0%.
Company recorded a healthy Net Profit CAGR of 58.7% 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 103% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is 44% vis-vis a compounded sales growth of 27% over the last 3 Years. – The compounded profit growth on a TTM basis is 36% vis-vis a compounded profit growth of 58% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter
-Debtor days have improved from 69.67 to 54.58 days. – has a low return on equity of 12.71% 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 88.16 and is trading at 119.0 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
