Mehabe score: 1 G Factor: 2 Piotski Score: 3 The stock has a rating SELL. 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 2 and Piotski score of 3.
Description
With more than a decade of experience in operating in the plastic packaging products industry, Rajshree is one of the leaders in manufacturing rigid plastic sheets and thermoformed packaging products which are tailored to the client’s requirements. Our products range from yoghurt & ice cream containers, food packing, QSRs, coffee cups, bakery products and confectioneries, beverage cups & containers, generic bowls, punnets & trays for fruits and vegetable packing, lids etc. [1] Site:RPPL Main Symbol:RPPL
Stock trades at 203.0, below its 50dma 222.86. However it is trading above its 200dma 182.23. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 222.86.
The 52 week high is at 284.00 and the 52week low is at 81.80
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– The company has delivered a poor sales growth of 5.98% over past five years.
– has a low return on equity of 10.53% for last 3 years.
Competition
– The industry trades at a mean P/E of 12.8x. Rajshree Polypac trades at the industry’s max P/E of 25.83x. RPPL trades at a P/E of 25.8x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 9.0. RPPL has a G-Factor of 2 and Piotski scoreof 3.
– Average 1 month return for industry is 1.0%. The max 1- month return was given by HSIL: a return of 26.05 %
Quarterly Results
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Company reported operating profit of Rs 6.53 cr for period ended Dec 2021 and operating profit margin at 13.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.23 compared to Rs 2.01 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 127.0 cr for period ended Mar 2021 vis-vis sales of Rs 126.0 cr for the period ended Mar 2020, a growth of 0.8%. The 3 year sales cagr stood at 4.3%.
Net Profit reported at Rs 9.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020,
Company reported a poor Net Profit CAGR of -3.5% 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 stock has given a return of 76% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is -5% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Conclusion
– – The company has delivered a poor sales growth of 5.98% over past five years.
– has a low return on equity of 10.53% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 222.86 and is trading at 203.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
