Mehabe score: 6 G Factor: 4 Piotski Score: 7 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 7.
Description
Prism Johnson is principally engaged in three business segments : Cement; Tile and Bath (HRJ) and Ready Mixed Concrete (RMC).(Source : 202003 Annual Report Page No:93)Site:PRSMJOHNSNMain Symbol:PRSMJOHNSN
Stock trades at 135.0, above its 50dma 130.24. It also trades above its 200dma 106.94. The stock remains bullish on techicals
The 52 week high is at 149.35 and the 52week low is at 43.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 316.22% CAGR over last 5 years
Weakness
– Stock is trading at 5.46 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.36% over past five years.
-Tax rate seems low
– has a low return on equity of 8.46% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.5x. Shree Cement trades at the industry’s max P/E of 43.49x. PRSMJOHNSN trades at a P/E of 39.5x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 9.0. PRSMJOHNSN has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by JK Lakshmi Cem.: a return of 10.78 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1850.0 cr compared to Rs 1483.0 cr for period ended Mar 2020, a rise of 24.7%
Operating Profits reported at Rs 238.0 cr for period ended Mar 2021 vis-vis 135.0 for period ended Mar 2020 .
Operating Margins expanded 376.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.3 compared to Rs 1.11 for previous quarter ended Dec 2020 and Rs -0.46 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5587.0 cr for period ended Mar 2021 vis-vis sales of Rs 5956.0 cr for the period ended Mar 2020, a fall of 6.6%. The 3 year sales cagr stood at 0.5%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 171.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, rising 98.8%.
Company recorded a healthy Net Profit CAGR of 59.7% 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 1281.0 cr for period ended Mar 2021 vis-vis Rs 435.0 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 15.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 153% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 10278% vis-vis a compounded profit growth of 58% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.96% vis-vis 2.96% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 14.77% vis-vis 14.99% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 316.22% CAGR over last 5 years – Stock is trading at 5.46 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.36% over past five years.
-Tax rate seems low
– has a low return on equity of 8.46% 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 130.24 and is trading at 135.0, thus bullish price action wise.
