Mehabe score: 3 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
Pil Italica Lifestyle is engaged in the business of Manufacture of Plastic articles.Site:PILITAMain Symbol:PILITA
Stock trades at 8.7, below its 50dma 10.9 and below its 200dma 10.94. The stock remains bearish on technicals
The 52 week high is at 19.30 and the 52week low is at 5.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 3.19 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.92% over past five years.
– has a low return on equity of 3.89% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.7x. Astral trades at the industry’s max P/E of 100.93x. PILITA trades at a P/E of 55.1x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. PILITA has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 1.8%. The max 1- month return was given by Jai Corp: a return of 33.01 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 8.85 cr compared to Rs 6.16 cr for period ended Jun 2020, a rise of 43.7%
Company reported operating profit of Rs 1.37 cr for period ended Jun 2021, operating profit margin at 15.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.04 compared to Rs 0.05 for previous quarter ended Mar 2021 and Rs -0.03 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 57.41 cr for period ended TTM vis-vis sales of Rs 54.25 cr for the period ended Mar 2021, a growth of 5.5%. The 3 year sales cagr stood at 2.9%.
Operating margins expanded to 13.15% for period ended TTM vis-vis 10.49% for period ended Mar 2021, expansion of 266.0 bps.
Net Profit reported at Rs 5.4 cr for period ended TTM vis-vis sales of Rs 3.71 cr for the period ended Mar 2021, rising 31.3%.
Company recorded a healthy Net Profit CAGR of 19.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -3.05 cr for period ended Mar 2021 vis-vis Rs -3.75 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 6.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 58% on a 1 Year basis vis-vis a return of -4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is 370% vis-vis a compounded profit growth of -26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 33.23% vis-vis 33.23% for Dec 2020
Conclusion
– is almost debt free. – Stock is trading at 3.19 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.92% over past five years.
– has a low return on equity of 3.89% for last 3 years.
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 10.9 and is trading at 8.7. Shows a near term lack of buying interest.
