Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 8.
Description
Pudumjee Paper Products is engaged in mainly belongs to Paper Industry and operates in Speciality Paper segment for Wrapping and Food Grade Packaging Paper, household and Sanitary Paper etc.(Source : 201903 Annual Report Page No: 85)Site:PDMJEPAPERMain Symbol:PDMJEPAPER
Stock trades at 43.6, above its 50dma 36.95. It also trades above its 200dma 27.01. The stock remains bullish on techicals
The 52 week high is at 47.40 and the 52week low is at 12.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 38.92% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of -1.42% over past five years.
-Tax rate seems low
– has a low return on equity of 11.58% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.8x. Century Textiles trades at the industry’s max P/E of 285.26x. PDMJEPAPER trades at a P/E of 8.22x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 8.0. PDMJEPAPER has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 13.0%. The max 1- month return was given by Century Textiles: a return of 33.03 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 148.0 cr compared to Rs 133.0 cr for period ended Mar 2020, a rise of 11.3%
Operating Profits reported at Rs 26.0 cr for period ended Mar 2021 vis-vis 11.0 for period ended Mar 2020 .
Operating Margins expanded 929.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.24 compared to Rs -0.08 for previous quarter ended Dec 2020 and Rs 0.41 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 437.0 cr for period ended Mar 2021 vis-vis sales of Rs 604.0 cr for the period ended Mar 2020, a fall of 38.2%. The 3 year sales cagr stood at -4.3%.
Operating margins expanded to 16.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 30.0 cr for period ended Mar 2021 vis-vis sales of Rs 27.0 cr for the period ended Mar 2020, rising 10.0%.
Company recorded a healthy Net Profit CAGR of 16.4% 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 86.0 cr for period ended Mar 2021 vis-vis Rs 52.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 17.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 201% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -28% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 85% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 28.8% vis-vis 28.81% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 38.92% CAGR over last 5 years – The company has delivered a poor sales growth of -1.42% over past five years.
-Tax rate seems low
– has a low return on equity of 11.58% for last 3 years.
