Mehabe score: 4 G Factor: 4 Piotski Score: 6 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 6.
Description
Plastiblends India is engaged into manufacturing of Masterbatches.(Source : 201903 Annual Report Page No: 62)Site:PLASTIBLENMain Symbol:PLASTIBLEN
Stock trades at 270.0, above its 50dma 248.99. It also trades above its 200dma 230.91. The stock remains bullish on techicals
The 52 week high is at 290.00 and the 52week low is at 155.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.65%
Weakness
– The company has delivered a poor sales growth of 2.47% over past five years.
– has a low return on equity of 12.61% for last 3 years.
Competition
– The industry trades at a mean P/E of 29.7x. Pidilite Inds. trades at the industry’s max P/E of 101.84x. PLASTIBLEN trades at a P/E of 18.8x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. PLASTIBLEN has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 8.0%. The max 1- month return was given by Vinati Organics: a return of 15.09 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 172.0 cr compared to Rs 141.0 cr for period ended Mar 2020, a rise of 22.0%
Operating Profits reported at Rs 19.0 cr for period ended Mar 2021 vis-vis 11.0 for period ended Mar 2020 .
Operating Margins expanded 324.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.66 compared to Rs 4.38 for previous quarter ended Dec 2020 and Rs 1.91 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 577.0 cr for period ended Mar 2021 vis-vis sales of Rs 587.0 cr for the period ended Mar 2020, a fall of 1.7%. The 3 year sales cagr stood at 0.5%.
Net Profit reported at Rs 37.0 cr for period ended Mar 2021 vis-vis sales of Rs 37.0 cr for the period ended Mar 2020,
Company recorded a healthy Net Profit CAGR of 11.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 12.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 0% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.14% vis-vis 1.14% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.66% vis-vis 32.72% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.65% – The company has delivered a poor sales growth of 2.47% over past five years.
– has a low return on equity of 12.61% 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 above its 50 DMA 248.99 and is trading at 270.0, thus bullish price action wise.
