Mehabe score: 2 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & 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 2 and Piotski score of 4.
Description
Shree Pushkar Chemicals & Fertilisers Ltd is engaged in the business of manufacturing and trading of chemicals, dyes and dyes intermediate, cattle feeds, fertilizers and soil conditioner.Site:SHREEPUSHK
Market Cap:
Rs 598 cr
Price:
194.0
Trading pe:
25.8x
Book-value:
95.3/share
Div yield:
0.26 %
Earning yield:
4.65%
Face-value:
10.0/share
52week high:
208.95
52week low:
84.00
Technical Analysis
Stock trades at 194.0, above its 50dma 168.11. It also trades above its 200dma 138.25. The stock remains bullish on techicals
The 52 week high is at 208.95 and the 52week low is at 84.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 0.40% over past five years.
– has a low return on equity of 11.03% for last 3 years.
-Dividend payout has been low at 8.65% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 24.6x. Atul trades at the industry’s max P/E of 40.3x. SHREEPUSHK trades at a P/E of 25.8x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. SHREEPUSHK has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 8.4%. The max 1- month return was given by Kiri Industries: a return of 34.77 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 78.22 cr compared to Rs 67.81 cr for period ended Mar 2020, a rise of 15.4%
Operating Profits reported at Rs 10.23 cr for period ended Mar 2021 vis-vis 8.44 for period ended Mar 2020 .
Operating Margins expanded 63.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.87 compared to Rs 2.62 for previous quarter ended Dec 2020 and Rs 3.28 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 254.0 cr for period ended Mar 2021 vis-vis sales of Rs 284.0 cr for the period ended Mar 2020, a fall of 11.8%. The 3 year sales cagr stood at -11.8%.
Operating margins shrank to 12.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 23.0 cr for period ended Mar 2021 vis-vis sales of Rs 31.0 cr for the period ended Mar 2020, falling 34.8%.
Company reported a poor Net Profit CAGR of -11.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 119% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -25% vis-vis a compounded profit growth of -11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.4% vis-vis 0.4% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.76% vis-vis 30.2% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 0.40% over past five years.
– has a low return on equity of 11.03% for last 3 years.
-Dividend payout has been low at 8.65% of profits over last 3 years
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 168.11 and is trading at 194.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
