Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 7.
Description
Vidhi Specialty Food Ingredients is engaged in the business of manufacturing and trading in synthetic food colors and trading in chemicals.Site:VIDHIING
Market Cap:
Rs 1,106 cr
Price:
221.0
Trading pe:
30.1x
Book-value:
25.8/share
Div yield:
0.45 %
Earning yield:
4.46%
Face-value:
1.00/share
52week high:
237.50
52week low:
58.25
Technical Analysis
Stock trades at 221.0, above its 50dma 196.98. It also trades above its 200dma 150.69. The stock remains bullish on techicals
The 52 week high is at 237.50 and the 52week low is at 58.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 20.04% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 30.02%
Weakness
– Stock is trading at 8.58 times its book value
-The company has delivered a poor sales growth of 7.61% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 24.9x. Atul trades at the industry’s max P/E of 40.32x. VIDHIING trades at a P/E of 30.1x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. VIDHIING has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Kiri Industries: a return of 23.07 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 98.0 cr compared to Rs 65.0 cr for period ended Mar 2020, a rise of 50.8%
Operating Profits reported at Rs 17.0 cr for period ended Mar 2021 vis-vis 15.0 for period ended Mar 2020 .
Operating Margins contracted -573.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.4 compared to Rs 2.1 for previous quarter ended Dec 2020 and Rs 2.04 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 266.0 cr for period ended Mar 2021 vis-vis sales of Rs 225.0 cr for the period ended Mar 2020, a healthy growth of 15.4%. The 3 year sales cagr stood at 7.7%.
Operating margins shrank to 20.0% for period ended Mar 2021 vis-vis 22.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 37.0 cr for period ended Mar 2021 vis-vis sales of Rs 34.0 cr for the period ended Mar 2020, rising 8.1%.
Company recorded a healthy Net Profit CAGR of 32.2% 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 28.0% compared to 30.0% over the last 3 Years. – The stock has given a return of 257% on a 1 Year basis vis-vis a return of 44% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 8% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.26% vis-vis 0.15% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 35.47% vis-vis 35.58% for Dec 2020
Conclusion
– has delivered good profit growth of 20.04% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 30.02% – Stock is trading at 8.58 times its book value
-The company has delivered a poor sales growth of 7.61% over past five years.
– might be capitalizing the interest cost
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 196.98 and is trading at 221.0, thus bullish price action wise.
