Mehabe score: 7 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
PG Electroplast is engaged in an Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products in India.(Source : 201903 Annual Report Page No: 84)Site:PGEL
Market Cap:
Rs 876 cr
Price:
445.0
Trading pe:
71.5x
Book-value:
97.7/share
Div yield:
0.00 %
Earning yield:
2.30%
Face-value:
10.0/share
52week high:
501.00
52week low:
35.50
Technical Analysis
Stock trades at 445.0, above its 50dma 355.44. It also trades above its 200dma 239.07. The stock remains bullish on techicals
The 52 week high is at 501.00 and the 52week low is at 35.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 4.55 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 5.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 40.1x. Amber Enterp. trades at the industry’s max P/E of 114.43x. PGEL trades at a P/E of 71.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. PGEL has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by PG Electroplast: a return of 19.29 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 703.0 cr for period ended Mar 2021 vis-vis sales of Rs 639.0 cr for the period ended Mar 2020, a growth of 9.1%. The 3 year sales cagr stood at 20.8%.
Operating margins expanded to 7.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 12.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, rising 75.0%.
Company recorded a healthy Net Profit CAGR of 19.7% 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 57.0 cr for period ended Mar 2021 vis-vis Rs 27.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 940% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is 288% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.06% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.11% vis-vis 30.12% for Dec 2020
Conclusion
– is expected to give good quarter – Stock is trading at 4.55 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 5.01% 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 355.44 and is trading at 445.0 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
