Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 8.
Description
Voith Paper Fabrics India is primarily involved in the business of manufacturing and selling of paper machine clothing for pulp, paper and board industry. Site:VOITHPAPR Main Symbol:VOITHPAPR
Stock trades at 1136.0, above its 50dma 1112.46. However it is trading below its 200dma 1147.73. The stock remains weak though short term bullish momentum supports price action. It needs to close above 1147.73 for bullish price action to continue
The 52 week high is at 1369.90 and the 52week low is at 1006.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 9.43% over past five years.
– has a low return on equity of 11.19% for last 3 years.
-Dividend payout has been low at 8.85% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 31.3x. Jindal Worldwide trades at the industry’s max P/E of 80.41x. VOITHPAPR trades at a P/E of 17.3x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 9.0. VOITHPAPR has a G-Factor of 1 and Piotski scoreof 8.
– Average 1 month return for industry is 7.4%. The max 1- month return was given by Jindal Worldwide: a return of 29.66 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 34.46 cr compared to Rs 30.67 cr for period ended Dec 2020, a rise of 12.4% .
vis-vis 10.52 for period ended Dec 2020 .
Operating Margins contracted -255.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 10.94 cr for period ended Dec 2021 and operating profit margin at 31.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 19.24 compared to Rs 14.27 for previous quarter ended Sep 2021 and Rs 18.19 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 137.0 cr for period ended TTM vis-vis sales of Rs 119.0 cr for the period ended Mar 2021, a healthy growth of 13.1%. The 3 year sales cagr stood at 6.9%.
Operating margins shrank to 28.0% for period ended TTM vis-vis 30.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 29.0 cr for period ended TTM vis-vis sales of Rs 27.0 cr for the period ended Mar 2021, rising 6.9%.
Company recorded a Net Profit CAGR of 8.0% 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 28.0 cr for period ended Mar 2021 vis-vis Rs 20.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 11.0% over the last 3 Years. – The stock has given a return of -1% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 13% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 24.77% vis-vis 24.77% for Sep 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 9.43% over past five years.
– has a low return on equity of 11.19% for last 3 years.
-Dividend payout has been low at 8.85% 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 1112.46 and is trading at 1136.0 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
