Share the post "Stovec Industries ‘s Q1 Update: Profit Grows by 77.72% YoY"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 6.9 % in the past year, substantial increase in net sales/revenue by 2.08 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -67.94 %, Marginal decrease of -59.01% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Stovec Industries Ltd.. Notable increase of 78.13 % in net profit Year to Year, Stovec Industries Ltd.’s profitability dropped by -24.4 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 78.24 % Year to Year. EPS decreased by -24.4 % 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. 57.251 Cr | Rs. 59.957 Cr | Rs. 61.203 Cr | + 2.08 % | + 6.9 % |
| Expenses | Rs. 54.6 Cr | Rs. 53.09 Cr | Rs. 55.24 Cr | + 4.05 % | + 1.17 % |
| Operating Profit | Rs. 2.65 Cr | Rs. 6.87 Cr | Rs. 5.96 Cr | -13.25 % | + 124.91 % |
| OPM % | 4.63 % | 11.46 % | 9.74 % | -1.72 % | + 5.11 % |
| Other Income | Rs. 1.469 Cr | Rs. 1.149 Cr | Rs. 0.471 Cr | -59.01 % | -67.94 % |
| Interest | Rs. 0 Cr | Rs. 0 Cr | Rs. 0 Cr | 0 % | 0 % |
| Depreciation | Rs. 1.48 Cr | Rs. 1.68 Cr | Rs. 1.68 Cr | + 0 % | + 13.51 % |
| Profit before tax | Rs. 2.64 Cr | Rs. 6.34 Cr | Rs. 4.75 Cr | -25.08 % | + 79.92 % |
| Tax % | 23.69 % | 25 % | 24.48 % | -0.52 % | + 0.79 % |
| Net Profit | Rs. 2.02 Cr | Rs. 4.75 Cr | Rs. 3.59 Cr | -24.42 % | + 77.72 % |
| EPS in Rs | Rs. 9.65 | Rs. 22.75 | Rs. 17.2 | -24.4 % | + 78.24 % |
Today, we’re looking at Stovec Industries 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 6.9 %. However, it did see a marginal increase of 2.08 % from the previous quarter. Expenses ticked up slightly by 4.05 % quarter-on-quarter, aligning with the annual rise of 1.17 %. Operating profit, while up 124.91 % compared to last year, faced a quarter-on-quarter dip of -13.25 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 5.11 %, but a shrinkage of -1.72 % sequentially. Other income fell by -59.01 % compared to the last quarter, despite an annual decline of -67.94 %. Depreciation costs climbed by 0 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 13.51 %. Profit before tax grew annually by 79.92 % but saw a reduction from the preceding quarter by -25.08 %.
Tax expenses as a percentage of profits increased slightly by 0.79 % compared to last year, with a more notable quarter-on-quarter decrease of -0.52 %. Net profit rose by 77.72 % year-on-year but witnessed a -24.42 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 78.24 % but a quarterly fall of -24.4 %. In summary, Stovec Industries 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. 57.251 Cr | Rs. 59.957 Cr | Rs. 61.203 Cr | + 2.08 % | + 6.9 % |
| Expenses | Rs. 54.6 Cr | Rs. 53.09 Cr | Rs. 55.24 Cr | + 4.05 % | + 1.17 % |
| Operating Profit | Rs. 2.65 Cr | Rs. 6.87 Cr | Rs. 5.96 Cr | -13.25 % | + 124.91 % |
| Net Profit | Rs. 2.02 Cr | Rs. 4.75 Cr | Rs. 3.59 Cr | -24.42 % | + 77.72 % |
| EPS in Rs | Rs. 9.65 | Rs. 22.75 | Rs. 17.2 | -24.4 % | + 78.24 % |
In reviewing Stovec Industries Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 6.9 % year-on-year growth, however, there was a minor increase of 2.08 % from the previous quarter. Expenses rose by 1.17 % compared to the previous year, with a 4.05 % increase quarter-on-quarter. Operating Profit surged by 124.91 % annually, and saw a -13.25 % decrease from the last quarter.
Net Profit showed yearly increase of 77.72 %, and experienced a -24.42 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 78.24 % annually, however dipped by -24.4 % compared to the last quarter. In essence, while Stovec Industries Ltd. exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
The company associated with BSE code 532406 presents a financial narrative of mixed fortunes. Over a five-year period, the company achieved a profit of 42 percents, which subsequently rose to 54 percents over the three years that followed. Yet, despite this initial growth, the company now faces a troubling trailing twelve-month (TTM) profit loss of 42 percents. What’s particularly striking is the company’s complete absence of reported sales across all analyzed periods, which brings into question the viability of its revenue generation strategies and long-term business sustainability. Moreover, stock prices have been highly volatile, reflecting the company’s uncertain future. While the stock was valued at 112 percents over the last five years, it has recently dropped to 47 percents, underscoring a rapid decline in market confidence. Over the longer ten-year period, the stock price was at 49 percents, illustrating a pattern of fluctuating performance that could pose risks for potential investors.
Currently valued at ₹3,820 crore, the company's stock price stands at ₹157. Over the years, it has seen significant fluctuations, with its price ranging from ₹224 / 86.0, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 65.0, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹8.09, which represents the net asset value of the company per share. The dividend yield of 0.12% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 47.4%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 38.7%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.09, signaling conservative financial management. However, the net cash flow is negative at ₹0.86 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 8.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹21.0, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 19.4, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
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