Mehabe score: 3 G Factor: 3 Piotski Score: 8 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 3 and Piotski score of 8.
Description
Tide Water Oil Company India is mainly engaged in the business of manufacturing and marketing of lubricants.Site:TIDEWATER
Market Cap:
Rs 3,815 cr
Price:
10948.0
Trading pe:
29.8x
Book-value:
1,970/share
Div yield:
2.28 %
Earning yield:
4.76%
Face-value:
5.00/share
52week high:
12999.00
52week low:
3775.00
Technical Analysis
Stock trades at 10948.0, above its 50dma 6713.27. It also trades above its 200dma 5064.1. The stock remains bullish on techicals
The 52 week high is at 12999.00 and the 52week low is at 3775.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 69.24%
Weakness
– The company has delivered a poor sales growth of 4.88% over past five years.
Competition
– The industry trades at a mean P/E of 27.2x. Pidilite Inds. trades at the industry’s max P/E of 93.26x. TIDEWATER trades at a P/E of 29.8x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. TIDEWATER has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 20.5%. The max 1- month return was given by Tide Water Oil: a return of 133.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 365.0 cr compared to Rs 305.0 cr for period ended Mar 2020, a rise of 19.7%
Operating Profits reported at Rs 43.0 cr for period ended Mar 2021 vis-vis 28.0 for period ended Mar 2020 .
Operating Margins expanded 260.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 105.2 compared to Rs 136.85 for previous quarter ended Dec 2020 and Rs 66.57 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1258.0 cr for period ended Mar 2021 vis-vis sales of Rs 1317.0 cr for the period ended Mar 2020, a fall of 4.7%. The 3 year sales cagr stood at -0.4%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 10.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 141.0 cr for period ended Mar 2021 vis-vis sales of Rs 122.0 cr for the period ended Mar 2020, rising 13.5%.
Company recorded a Net Profit CAGR of 9.6% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 180% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 1% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.59% vis-vis 0.6% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.56% vis-vis 28.55% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 69.24% – The company has delivered a poor sales growth of 4.88% over past five 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 6713.27 and is trading at 10948.0 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
