Mehabe score: 7 G Factor: 7 Piotski Score: 6 The stock has a rating . 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 7 and Piotski score of 6.
Description
Shree Digvijay Cement Co. Ltd has operated since 1944. The cos. principal business is manufacturing and selling cement. They sell cement under the brand name “Kamal Cement”. Since 2019, the co. is part of True North formerly known as India Value Fund Advisors (IVFA). Mr. KK Rajeev Nambiar is the CEO & Managing Director of the co. # # ##Site:SHREDIGCEMMain Symbol:SHREDIGCEM
Stock trades at 91.0, above its 50dma 83.81. It also trades above its 200dma 68.39. The stock remains bullish on techicals
The 52 week high is at 97.45 and the 52week low is at 42.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 48.16% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 34.49%
Weakness
– The company has delivered a poor sales growth of 1.21% over past five years.
-Promoter holding has decreased over last 3 years: -18.35%
Competition
– The industry trades at a mean P/E of 21.6x. Shree Cement trades at the industry’s max P/E of 43.62x. SHREDIGCEM trades at a P/E of 19.7x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 9.0. SHREDIGCEM has a G-Factor of 7 and Piotski scoreof 6.
– Average 1 month return for industry is 13.8%. The max 1- month return was given by JK Lakshmi Cem.: a return of 26.35 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 155.0 cr compared to Rs 88.0 cr for period ended Jun 2020, a rise of 76.1%
Operating Profits reported at Rs 41.0 cr for period ended Jun 2021 vis-vis 21.0 for period ended Jun 2020 .
Operating Margins expanded 258.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.52 compared to Rs 1.93 for previous quarter ended Mar 2021 and Rs 0.71 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 570.0 cr for period ended TTM vis-vis sales of Rs 503.0 cr for the period ended Mar 2021, a healthy growth of 11.8%. The 3 year sales cagr stood at 9.3%.
Operating margins expanded to 22.0% for period ended TTM vis-vis 21.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 66.0 cr for period ended TTM vis-vis sales of Rs 54.0 cr for the period ended Mar 2021, rising 18.2%.
Company recorded a healthy Net Profit CAGR of 220.8% 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 95.0 cr for period ended Mar 2021 vis-vis Rs 94.0 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 19.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 57% on a 1 Year basis vis-vis a return of 53% over the last 3 Years. – The compounded sales growth on a TTM bassis is 31% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 28% vis-vis a compounded profit growth of 60% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.24% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 43.11% vis-vis 43.19% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 48.16% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 34.49% – The company has delivered a poor sales growth of 1.21% over past five years.
-Promoter holding has decreased over last 3 years: -18.35%
