Mehabe score: 7 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
Shish Industries Ltd is engaged in manufacturing and selling Corrugated Plastic Sheets which are used in industries like architecture and construction, packing, printing, medical equipment etc. [1] Site:SHISHIND Main Symbol:SHISHIND
Stock trades at 75.2, above its 50dma 72.1. It also trades above its 200dma 62.44. The stock remains bullish on techicals
The 52 week high is at 93.10 and the 52week low is at 24.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 36.06 to 25.94 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.43% for last 3 years.
-Earnings include an other income of Rs.1.27 Cr.
Competition
– The industry trades at a mean P/E of 28.8x. Responsive Ind trades at the industry’s max P/E of 255.43x. SHISHIND trades at a P/E of 43.2x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. SHISHIND has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 12.6%. The max 1- month return was given by Responsive Ind: a return of 75.19 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 8.82 cr compared to Rs 8.23 cr for period ended Dec 2020, a rise of 7.2% .
vis-vis 0.71 for period ended Dec 2020 .
Operating Margins contracted -239.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.55 cr for period ended Dec 2021 and operating profit margin at 6.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.34 compared to Rs 0.5 for previous quarter ended Sep 2021 and Rs 0.36 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 43.19 cr for period ended TTM vis-vis sales of Rs 28.28 cr for the period ended Mar 2021, a healthy growth of 34.5%. The 3 year sales cagr stood at 57.6%.
Operating margins shrank to 5.35% for period ended TTM vis-vis 7.89% for period ended Mar 2021, contraction of 254.0 bps.
Net Profit reported at Rs 1.74 cr for period ended TTM vis-vis sales of Rs 1.34 cr for the period ended Mar 2021, rising 23.0%.
Company recorded a healthy Net Profit CAGR of 25.0% 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 1.95 cr for period ended Mar 2021 vis-vis Rs 0.53 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 13.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 142% on a 1 Year basis vis-vis a return of 65% over the last 3 Years. – The compounded sales growth on a TTM bassis is 77% vis-vis a compounded sales growth of 50% over the last 3 Years. – The compounded profit growth on a TTM basis is 38% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 29.42% vis-vis 29.42% for Sep 2021
Conclusion
– Debtor days have improved from 36.06 to 25.94 days. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.43% for last 3 years.
-Earnings include an other income of Rs.1.27 Cr.
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 72.1 and is trading at 75.2, thus bullish price action wise.
