Mehabe score: 6 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Shankar Lal Rampal Dye-Chem is named as a prominent Trader, Exporter, Importer, and Supplier of Sulphur Dyes, Paraffin Wax, Phosphoric Acid, Sodium Sulphide, Hydrogen Peroxide, Citric Acid Monohydrate, Phosphate Chemicals, and Refined Glycerine, in India.(Source : Company Web-site) Site:SRD Main Symbol:SRD
Stock trades at 127.0, below its 50dma 539.2 and below its 200dma 514.37. The stock remains bearish on technicals
The 52 week high is at 690.00 and the 52week low is at 359.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 137.96% CAGR over last 5 years
-‘s median sales growth is 19.84% of last 10 years
Weakness
– Stock is trading at 4.74 times its book value
– has a low return on equity of 11.00% for last 3 years.
Competition
– The industry trades at a mean P/E of 36.7x. Adani Enterp. trades at the industry’s max P/E of 229.97x. SRD trades at a P/E of 20.4x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. SRD has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is -0.9%. The max 1- month return was given by Shankar Lal Ram.: a return of 48.92 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 109.0 cr compared to Rs 55.0 cr for period ended Dec 2020, a rise of 98.2% .
vis-vis 5.0 for period ended Dec 2020 .
Operating Margins expanded 650.5 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 17.0 cr for period ended Dec 2021 and operating profit margin at 15.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 5.99 compared to Rs 1.94 for previous quarter ended Sep 2021 and Rs 1.44 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 255.0 cr for period ended TTM vis-vis sales of Rs 178.0 cr for the period ended Mar 2021, a healthy growth of 30.2%. The 3 year sales cagr stood at 13.2%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs 23.0 cr for period ended TTM vis-vis sales of Rs 8.0 cr for the period ended Mar 2021, rising 65.2%.
Company recorded a healthy Net Profit CAGR of 125.7% 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 10.0 cr for period ended Mar 2021 vis-vis Rs -6.0 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 17.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 534% on a 1 Year basis vis-vis a return of 93% over the last 3 Years. – The compounded sales growth on a TTM bassis is 34% vis-vis a compounded sales growth of 33% over the last 3 Years. – The compounded profit growth on a TTM basis is 184% vis-vis a compounded profit growth of 100% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 26.49% vis-vis 26.49% for Sep 2021
Conclusion
– has delivered good profit growth of 137.96% CAGR over last 5 years
-‘s median sales growth is 19.84% of last 10 years – Stock is trading at 4.74 times its book value
– has a low return on equity of 11.00% 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 539.2 and is trading at 127.0. 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
