Check Before You Invest : National Plywood Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does National Plywood Industries Ltd belong to?

National Plywood Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Wood & Wood Products segment.

Q.2 Is National Plywood Industries Ltd a good quality company?

National Plywood Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is National Plywood Industries Ltd undervalued or overvalued?

National Plywood Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is National Plywood Industries Ltd a good buy now?

National Plywood Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of National Plywood Industries Ltd?

National Plywood Industries Ltd revenue growth is -4.5% for FY-2019, which is below its 5-year CAGR of -1.53%, indicating slower growth.

Q.2 Return on Asset of National Plywood Industries Ltd?

National Plywood Industries Ltd Return on Asset is 1.49%, which is in line with its 5-year historical median of 1.49%, indicating stable asset utilization efficiency.

Q.3 Cash conversion cycle of National Plywood Industries Ltd?

National Plywood Industries Ltd Cash conversion cycle is 35 days, above its 5-year historical median of 3 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Q.4 Gross Profit margin of National Plywood Industries Ltd?

National Plywood Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.2% for FY-2019, which is in line with its 5-year median of 3.2%, indicating stable margins.

Q.5 Operating Profit Margin of National Plywood Industries Ltd?

National Plywood Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.39% for FY-2019, which is above its 5-year median of -2.25% indicating increasing margins.

Q.6 Net Profit Margin of National Plywood Industries Ltd?

National Plywood Industries Ltd Net Profit Margin is 1.81% for FY-2019, is in line with with its 5-year median of 1.81%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.2	3.2
Operating Profit Margin	0.39	-2.25
Net Profit Margin	1.81	1.81

Q.7 Debt to Equity ratio of National Plywood Industries Ltd?

National Plywood Industries Ltd Debt-to-Equity ratio is -1.29, which is lower with the industry average of 0.28, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of National Plywood Industries Ltd?

National Plywood Industries Ltd Debt to cash flow from operations is -0.77, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of National Plywood Industries Ltd?

Promoters hold 40.43% of the National Plywood Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of National Plywood Industries Ltd vs industry peers?

National Plywood Industries Ltd revenue CAGR is -1.53%, compared to the industry median CAGR of 8.12%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.5	8.1
Gross Profit Growth	25.7	11.8
Operating Profit Growth	0	9
Net Profit Growth	63.6	14.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.82	0.93
ROE	-	5.5
ROCE	-	7.45
Cash Conversion Cycle (days)	34.72	95

Valuation & price assessment

Q.1 Stock return of National Plywood Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -6.88% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-6.9%	-13.4%	-32.3%

Q.3 Valuation ratios of National Plywood Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-7.93	26.73
Price to Book	-	-2.61	2.81
Price to Sales	0.2	0.34	1.60
EV to EBITDA	-14.77	-18.49	14.35

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