Under-valued MNC stock set to scale new heights on the eve of its golden jubilee.
Regd Office: Vadodara Incorporation: December 7, 1973
Promoter : INEOS Styrolution, global leader in Styrene Monomer, Polystyrene, ABS Standard and Styrenic Specialties, operating in 10 countries and supplying to 106 countries.
Product/User : ABSOLAC – Home Appliances/Automobiles/Consumer Durables/Business Machines ABSOLAN – Lightings/Stationeries/Novelties/Refrigerators/Cosmetic Packing.
Financials (Rs Cr):
|
Financials (Rs Cr) |
|
|
Market Cap |
2499 |
|
Borrowing |
33 |
|
Fixed Assets |
401 |
|
Revenue |
1631 |
|
Other Income |
13 |
|
EBIDTA |
427 |
|
Interest |
15 |
|
Net Profit |
280 |
|
Equity Cap |
18 |
|
Reserves |
871 |
- Mid-size company with high growth potential
- Sound financials, relatively low capital base, attractive profits, hefty reserves
- Solid asset base, small debt and interest burden
- Highly encouraging current working, slated to post record profits
Stock Features
|
Stock Features |
|
|
Current Price (Rs) |
1421 |
|
Face Value (Rs) |
10 |
|
Book Value |
505 |
|
Promoter Stake % |
75 |
|
Debt/Equity |
0.04 |
- Reassuring promoter’s stake
- Available at 25% discount to its 52-Week High
- Book value is 50 times its paid up value
- Negligible debt-gearing
- Listed on both BSE and NSE
Profitability
|
Profitability |
|
|
OPM % |
25.4 |
|
Net Margin % |
17.0 |
|
Cash EPS |
179.83 |
|
Earnings Per Share |
159.34 |
- Operating profit margin is attractive
- Net Profit margin is impressive
- Cash earning is 18 times its face value
- Net earnings is 16 times the face value
Return
|
Return |
|
|
RONW % |
31.5 |
|
ROCE % |
42.4 |
- Return on Equity for FY21 is very attractive
- Return on Capital Employed is very impressive
Discounting
|
Discounting |
|
|
Price/Earnings |
8.9 |
|
Price/Cash EPS |
7.9 |
|
Price/Book Value |
2.8 |
|
Price/EBIDTA |
5.9 |
|
Price/Revenue |
1.5 |
|
Price/Fixed Assets |
6.2 |
- P/E multiple is attractively very low on historical earnings; On current earnings it looks abysmally low
- Price to Book value is much lower the current market composite which will become further cheap at the end of current fiscal
|
Quarterly Working (Amount in Cr) |
|||||
|
Period Ended |
Sep-21 |
Jun-21 |
Mar-21 |
Dec-20 |
Sep-20 |
|
Months |
3 |
3 |
3 |
3 |
3 |
|
Revenue |
588 |
455 |
637 |
485 |
395 |
|
Operating Profit |
125 |
126 |
227 |
144 |
63 |
|
OPM% |
21.2 |
27.8 |
35.7 |
29.7 |
16.1 |
|
Other Income |
7 |
4 |
4 |
4 |
4 |
|
EBIDTA |
132 |
131 |
231 |
148 |
68 |
|
EBIDTA % |
22.1 |
28.5 |
36.1 |
30.2 |
17 |
|
Interest |
1.5 |
3.16 |
5.30 |
3.25 |
3.67 |
|
Depreciation |
9.67 |
9.12 |
9.16 |
9.17 |
8.91 |
|
Net Profit |
90.03 |
86.03 |
161.40 |
103.00 |
35.84 |
|
Equity |
17.59 |
17.59 |
17.59 |
17.59 |
17.59 |
Conclusion
Fiscal 2023 being the Golden Jubilee Year of the company, in view of the company’s highly encouraging current earnings and reserves, shareholders can expect handsome rewards from this stock in the next 18 months.