Investment Memo: MYSPAPE

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Our Rating: HOLD

Mehabe score: 2
G Factor: 4
Piotski Score: 5
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 4 and Piotski score of 5.

Description

Mysore Paper Mills Limited,incorporated in India, listed on the Bombay Stock Exchange Limited, the company is engaged in Paper and Sugar
Site: MYSPAPE
Main Symbol: MYSPAPE

Price Chart

Technical Analysis

• Stock trades at 7.42, below its 50dma 106.55 and below its 200dma 102.27. The stock remains bearish on technicals
• The 52 week high is at 142.50 and the 52week low is at 66.60

Price Chart

P/E Chart

Sales and Margin

Strengths

– is expected to give good quarter

Weakness

– has low interest coverage ratio.

Competition

– The industry trades at a mean P/E of 14.6x. Century Textiles trades at the industry’s max P/E of 124.86x. MYSPAPE trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 5.0. MYSPAPE has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 22.3%. The max 1- month return was given by JK Paper: a return of 40.27 %

Quarterly Results

• Sales for period ended Dec 2021 is Rs 8.0 cr compared to Rs 2.0 cr for period ended Dec 2020, a rise of 300.0% .

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• Company reported operating profit of Rs 1.0 cr for period ended Dec 2021 and operating profit margin at 12.5 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
• The EPS for quarter ended Dec 2021 is Rs -1.93 compared to Rs -2.12 for previous quarter ended Sep 2021 and Rs -2.14 for Dec 2020.

Profit & Loss Statement

Profit&Loss Comments

• Company reported sales of Rs 15.0 cr for period ended TTM vis-vis sales of Rs 9.0 cr for the period ended Mar 2021, a healthy growth of 40.0%.
• Operating margins expanded to -23.0% for period ended TTM vis-vis -91.0% for period ended Mar 2021, expansion of 6800.0 bps.
• Net Profit reported at Rs 79.0 cr for period ended TTM vis-vis sales of Rs -102.0 cr for the period ended Mar 2021, rising 0%.

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 % on a 1 Year basis vis-vis a return of % over the last 3 Years.
– The compounded sales growth on a TTM bassis is 24% vis-vis a compounded sales growth of % over the last 3 Years.
– The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of % over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.34% vis-vis 25.34% for Sep 2021

Conclusion

– is expected to give good quarter – has low interest coverage ratio.

• 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 below its 50 DMA 106.55 and is trading at 7.42. Shows a near term lack of buying interest.
• Thus, overall we retain a HOLD on the stock.

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