- Look to the Equity in Balance sheets :
| Dec-07 | Dec-08 | Dec-09 | Dec-10 | Dec-11 | Dec-12 | Dec-13 | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Sep-19 | |
| Share Capital + | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 | 64 |
- Equity not change, not diluted, no bonus.
- Good sign for growth.
2-Look to the Assets: Assets are growing 107 to 1388,
| Fixed Assets + | 107 | 121 | 134 | 157 | 221 | 243 | 248 | 309 | 304 | 268 | 296 | 317 | 1388 |
- Asset Increase 10 times more, then company will be highly profitable.
- In 2019, it increases 3 times – Needs to Check?
- Loan increases 0-217 in 2019, that’s why this year assets increases.
3-Check Profits:
| Net Profit | 41 | 59 | 63 | 88 | 259 | 172 | 191 | 231 | 217 | 159 | 221 | 329 | 379 |
- Profit increases more than 9 times.
4-Check the dividend: They are giving dividend 15-32 % .
| Dividend Payout % | 32% | 27% | 31% | 29% | 15% | 22% | 22% | 18% | 21% | 28% | 23% | 24% |
- Remaining amount will go for reserve.
5-Check the reserve:
| Reserves | 195 | 233 | 272 | 329 | 508 | 635 | 776 | 957 | 1,157 | 1,260 | 1,410 | 1,678 | 1,659 |
- Now reserve increase 8 times in 11 years.
- This money used for Growth of the company.
6-Check the Loans:
| Borrowings | 52 | 45 | 30 | 76 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 217 |
- Zero loans for 6 years.
- Loan taken only 5 times in 11 years.
7-Check the Cash:
| Cash Equivalents | 34.83 | 37.43 | 57.34 | 138.89 | 123.03 | 187.69 | 255.75 | 210.06 | 342.47 | 522.04 | 591.19 | 840.32 | 800.02 |
- Sufficient cash is available ,4 times of debt.
8-Checked the Growth:
| Sales + | 867 | 987 | 1,092 | 1,275 | 1,549 | 1,842 | 2,065 | 2,694 | 2,423 | 2,474 | 2,634 | 2,931 | 3,116 |
- Sales growth is also 8 times and linear form.
- Compounded Sales Growth- 6.5- 11.5% , Trends is growing.
- Compounded Profit Growth- 10.5 – 25.0 %, Trends is growing.
9-Check the OPM %: This is growing up.
| OPM % | 7% | 9% | 11% | 13% | 15% | 16% | 16% | 13% | 11% | 12% | 14% | 17% | 25% |
Conclusions:
- Balance sheets is stable . equity share not diluted and split.
- Financial stable and used own fund to grow.
- Assets increasing in every years 10 times in 12 years.
- Net profit is increase 9 times and growing.
- Normal dividend given and rest use for making asset.
- Reserve increases 9 times.
- Good cash and small amount of loan. Cash is 4 times of loan.
- 6 times zero debts.
- Sales growth is 8 times and growing further.
- Operating Margin increase in upwards.
Results- Overall Company is financial sound.
This research is based on my experience before investing you have to do your own research and used it as guide.
Wish you best for your investment journey
Jazakalllah Khair
Add Comment