Mehabe score: 5 G Factor: 3 Piotski Score: 5 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 3 and Piotski score of 5.
Description
The company was originally incorporated in February 1981 as HICS Cements Private Limited (HCPL), the company initially was a manufacturer of cement. In January 2015, some of the existing promoters took over the management and changed the name to Mishtann Foods Limited (MFL) [1] It is an agro-product company in India involved in manufacturing, processing & trading of rice, wheat, and other food grains with its preliminary focus on branded basmati rice. Site:MISHTANN Main Symbol:MISHTANN
Stock trades at 28.1, above its 50dma 20.72. It also trades above its 200dma 15.94. The stock remains bullish on techicals
The 52 week high is at 30.45 and the 52week low is at 3.88
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 58.40%
Weakness
– Stock is trading at 17.57 times its book value
– has a low return on equity of 6.52% for last 3 years.
-Debtor days have increased from 67.46 to 84.25 days.
Competition
– The industry trades at a mean P/E of 44.8x. Mishtann Foods trades at the industry’s max P/E of 132.67x. MISHTANN trades at a P/E of 133.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. MISHTANN has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 17.0%. The max 1- month return was given by Mishtann Foods: a return of 67.42 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 147.69 cr compared to Rs 118.16 cr for period ended Dec 2020, a rise of 25.0% .
vis-vis 3.45 for period ended Dec 2020 .
Operating Margins expanded 568.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 12.71 cr for period ended Dec 2021 and operating profit margin at 8.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.16 compared to Rs 0.13 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 450.0 cr for period ended TTM vis-vis sales of Rs 351.0 cr for the period ended Mar 2021, a healthy growth of 22.0%. The 3 year sales cagr stood at -2.3%.
Operating margins expanded to 7.0% for period ended TTM vis-vis 2.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 18.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 94.4%.
Company recorded a healthy Net Profit CAGR of 14.5% 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 383% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 280% vis-vis a compounded profit growth of -49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 50.72% vis-vis 50.72% for Jun 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 58.40% – Stock is trading at 17.57 times its book value
– has a low return on equity of 6.52% for last 3 years.
-Debtor days have increased from 67.46 to 84.25 days.
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 20.72 and is trading at 28.1 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
