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
Sanginita Chemicals is engaged in the business of manufacturing of Chemicals.Site:SANGINITAMain Symbol:www.nseindia.com
Stock trades at 30.0, above its 50dma 24.65. However it is trading below its 200dma 35.98. The stock remains weak though short term bullish momentum supports price action. It needs to close above 35.98 for bullish price action to continue
The 52 week high is at 92.00 and the 52week low is at 18.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.69% over past five years.
– has a low return on equity of 7.39% for last 3 years.
Competition
– The industry trades at a mean P/E of 30.2x. Pidilite Inds. trades at the industry’s max P/E of 100.84x. SANGINITA trades at a P/E of 68.0x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. SANGINITA has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 9.5%. The max 1- month return was given by Sanginita Chemi.: a return of 29.93 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 57.38 cr compared to Rs 26.77 cr for period ended Jun 2020, a rise of 114.3%
Operating Profits reported at Rs 1.53 cr for period ended Jun 2021 vis-vis 0.63 for period ended Jun 2020 .
Operating Margins expanded 31.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.46 compared to Rs -0.07 for previous quarter ended Mar 2021 and Rs -0.1 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 195.0 cr for period ended TTM vis-vis sales of Rs 165.0 cr for the period ended Mar 2021, a healthy growth of 15.4%. The 3 year sales cagr stood at 1.2%.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 50.0%.
Company reported a poor Net Profit CAGR of -20.6% 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 9.0 cr for period ended Mar 2021 vis-vis Rs -2.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 7.0% over the last 3 Years. – The stock has given a return of -65% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -77% vis-vis a compounded profit growth of -39% over the last 3 Years.
Ratios
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.69% over past five years.
– has a low return on equity of 7.39% 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 24.65 and is trading at 30.0, thus bullish price action wise.
