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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 0.82 % in the past year, decrease in net sales/revenue by -19.24 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 101.9 %. Marginal increase in other income during this quarter, up by 16%.
- Profit over the Year and quarter: Significant improvement in profitability for Prima Plastics Ltd.. Notable increase of 9.94 % in net profit Year to Year, Prima Plastics Ltd.’s profitability dropped by -44.8 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 11.40 % Year to Year. EPS decreased by -44.75 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 40.633 Cr | Rs. 50.727 Cr | Rs. 40.965 Cr | -19.24 % | + 0.82 % |
| Expenses | Rs. 34.69 Cr | Rs. 40.89 Cr | Rs. 36.2 Cr | -11.47 % | + 4.35 % |
| Operating Profit | Rs. 5.94 Cr | Rs. 9.84 Cr | Rs. 4.76 Cr | -51.63 % | -19.87 % |
| OPM % | 14.62 % | 19.4 % | 11.62 % | -7.78 % | -3 % |
| Other Income | Rs. 1.16 Cr | Rs. 2.019 Cr | Rs. 2.342 Cr | + 16 % | + 101.9 % |
| Interest | Rs. 0.93 Cr | Rs. 0.93 Cr | Rs. 0.85 Cr | -8.6 % | -8.6 % |
| Depreciation | Rs. 1.77 Cr | Rs. 1.63 Cr | Rs. 1.62 Cr | -0.61 % | -8.47 % |
| Profit before tax | Rs. 4.4 Cr | Rs. 9.3 Cr | Rs. 4.63 Cr | -50.22 % | + 5.23 % |
| Tax % | 22.81 % | 27.6 % | 26.14 % | -1.46 % | + 3.33 % |
| Net Profit | Rs. 3.65 Cr | Rs. 7.28 Cr | Rs. 4.02 Cr | -44.78 % | + 10.14 % |
| EPS in Rs | Rs. 3.07 | Rs. 6.19 | Rs. 3.42 | -44.75 % | + 11.4 % |
Today, we’re looking at Prima Plastics Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 0.82 %. However, it did see a marginal slip of -19.24 % from the previous quarter. Expenses decreased slightly by -11.47 % quarter-on-quarter, aligning with the annual rise of 4.35 %. Operating profit, while down -19.87 % compared to last year, faced a quarter-on-quarter dip of -51.63 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3 %, but a shrinkage of -7.78 % sequentially. Other income rose by 16 % compared to the last quarter, despite an annual growth of 101.9 %. Interest expenses dropped significantly by -8.6 % from the previous quarter, yet the year-over-year decrease remains at a moderate -8.6 %. Depreciation costs fell by -0.61 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -8.47 %. Profit before tax grew annually by 5.23 % but saw a reduction from the preceding quarter by -50.22 %.
Tax expenses as a percentage of profits increased slightly by 3.33 % compared to last year, with a more notable quarter-on-quarter decrease of -1.46 %. Net profit rose by 10.14 % year-on-year but witnessed a -44.78 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 11.4 % but a quarterly fall of -44.75 %. In summary, Prima Plastics Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 40.633 Cr | Rs. 50.727 Cr | Rs. 40.965 Cr | -19.24 % | + 0.82 % |
| Expenses | Rs. 34.69 Cr | Rs. 40.89 Cr | Rs. 36.2 Cr | -11.47 % | + 4.35 % |
| Operating Profit | Rs. 5.94 Cr | Rs. 9.84 Cr | Rs. 4.76 Cr | -51.63 % | -19.87 % |
| Net Profit | Rs. 3.65 Cr | Rs. 7.28 Cr | Rs. 4.02 Cr | -44.78 % | + 10.14 % |
| EPS in Rs | Rs. 3.07 | Rs. 6.19 | Rs. 3.42 | -44.75 % | + 11.4 % |
In reviewing Prima Plastics Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 0.82 % year-on-year growth, although there was a slight dip of -19.24 % from the previous quarter. Expenses rose by 4.35 % compared to the previous year, with a decrease of -11.47 % quarter-on-quarter. Operating Profit dropped by -19.87 % annually, and saw a -51.63 % decrease from the last quarter.
Net Profit showed yearly increase of 10.14 %, and experienced a -44.78 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 11.4 % annually, however dipped by -44.75 % compared to the last quarter. In essence, while Prima Plastics Ltd. exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
-4
3-Year Profit
-7
5-Year Profit
2
10-Year Profit
175
Current Price
193
Market Cap
Upon examining the financial data for BSE code 530589, it becomes clear that the company achieved a notable five-year profit of -7 percents, which impressively increased to -4 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of -51 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 22 percents over the five-year period to just -3 percents in the last year. The ten-year average stock price, which sits at 11 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
The company has a market capitalization of ₹193 crore and is currently trading at ₹175 per share. Historically, the stock has fluctuated within a range of ₹254 / 146, reflecting both the opportunities and risks that investors perceive in the company. The P/E ratio, at 8.68, is relatively high, suggesting that the market has priced in substantial future growth or is willing to pay a premium for the company’s current earnings. The book value per share stands at ₹140, which reflects the net asset value of the company divided by the number of outstanding shares. The dividend yield is 1.14%, providing shareholders with a consistent return on their investment. ROCE is 17.0%, indicating how well the company is using its capital to generate profits, while ROE at 15.0% highlights the returns generated from shareholders' equity. The debt-to-equity ratio is 0.24, signaling low financial leverage, which is typically seen as a positive indicator of financial health. However, the company’s negative net cash flow of ₹9.08 crore might raise concerns about its cash generation capabilities or capital expenditures. With a Piotroski score of 9.00, the company's financial stability is evaluated on several factors. Finally, the Graham Number, at ₹252, provides an estimate of the stock’s intrinsic value, while the Price-to-Book (P/B) ratio of 1.25 highlights that the stock is trading at a premium to its book value, potentially reflecting positive market sentiment or overvaluation risks.
