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Prism Johnson Ltd. Stock Analysis

Small Cap
Evaluated by 1119 users | BSE: 500338 | NSE: PRSMJOHNSN |
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Prism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement (PPC) with the brand name 'Champion' and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Prism Johnson Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.89%4.07%3.12%3.19%5.32%4.97%5.39%7.78%10.84%7.52%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,3874,5054,7684,9655,5945,2775,0215,4085,9565,572
Y-o-Y Gr. Rt.-33%5.9%4.1%12.7%-5.7%-4.9%7.7%10.1%-6.4%
Adjusted EPS (Rs.) 1.96-0.42-1.12-1.66-0.57-0.580.281.323.081.23
Y-o-Y Gr. Rt.--121.4%NANANANANA371.4%133.3%-60.1%
Book Value per Share (Rs.) 2422.8221.6520.0320.1718.6818.9920.3822.6922.32
Adjusted Net Profit 98.6-21.3-56.3-83.8-28.6-29.114.166.615562.2
Net Op. Cash Flow (Rs. Cr.) 262245245-14.7231372543459498246
Debt to Cash Flow from Ops 4.465.296.75-124.468.214.993.013.362.957.54
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Prism Johnson Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.7%-0.1%3.5%-6.4%
Adjusted EPS -5.1%NA63.8%-60.1%
Book Value per Share -0.82.15.5-1.6
Share Price 3.5% -9% -19% -37%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.29-1.8-5.03-7.98-2.83-2.971.496.7214.325.49
Operating Profit Margin (%) 10.276.25.713.075.234.85.697.119.439.51
Net Profit Margin (%) 2.91-0.47-1.18-1.69-0.51-0.550.281.232.611.12
Debt to Equity 0.971.131.521.821.871.971.711.51.291.65
Working Capital Days 80819710610211310810297105
Cash Conversion Cycle 138410131410141519
Entity Percentage Holding
Promoters 74.87%
Institutions 11.05%
Non-Institutions 14.08%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Prism Johnson and arrived at the following conclusion:

Past 10 year's financial track record indicates that Prism Johnson is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Prism Johnson's performance infers:

Prism Johnson earnings have grown by 0%, whereas share price has depreciated -9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Prism Johnson share prices over the last 10 years. Here is what we found out:

Prism Johnson share price has depreciated -1% annually over the past ten years.

Prism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement (PPC) with the brand name 'Champion' and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km of its plant at Satna, MP. It has a wide marketing network with about 2,000 dealers serviced from 46 stocking points.

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Prism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement (PPC) with the brand name 'Champion' and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km of its plant at Satna, MP. It has a wide marketing network with about 2,000 dealers serviced from 46 stocking points.

Prism currently sells over 3 MTPA of cement and clinker and is in the process of establishing another unit at the same location with a proposed cement capacity of 3.6 MTPA by 2010-2011. It is also in the process of setting up a 4.8 MTPA capacity cement plant in Andhra Pradesh by 2013-2014. This will take its overall capacity above 11 MTPA.

Prism Cement is India’s largest integrated Building Materials Company; with a wide range from cement, ready-mixed concrete, tiles, bath products to kitchens. The company has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India).  Prism Cement also has a 74% stake in Raheja QBE General Insurance Company, a JV with QBE Group of Australia.

In November 2011, H& R Johnson (India), a division of Prism Cement Limited and the world’s 7th largest tile company entered into a joint venture with “Small Tiles Private Ltd”, a manufacturer of ceramic glazed floor tiles. With this venture, H&R Johnson (India) has acquired a 50 per cent stake in “Small Tiles Private Ltd”.

This is an ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 & SA 8000:2008 Certified Company.

Business area of the company

Prism Cement manufactures and markets Portland Pozzollana Cement (PPC) with the brand name ‘Champion’ and the full range of Ordinary Portland Cement (OPC) of 33, 43 and 53 Grades.

‘Champion’ Prism’s largest selling product is a general-purpose cement popular for all applications during house construction by individuals. Prism Cement’s OPC is in demand for specialised cement concrete applications like high-rise buildings, bridges, manufacturing AC sheets, pipes, poles etc.

Rich deposits of high quality limestone, highly automated and sophisticated controls ensure that the cement manufactured by Prism meets the highest quality standards. All the cement manufactured by Prism Cement carry the BIS Certification Mark. In fact, the strength and other characteristics are much higher than the BIS requirements. Excellent quality has placed Prism Cement in the premium price segment.

Division of the company

H & R Johnson (India) : Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles in India. HRJ has consistently maintained its leadership position in the field of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and Kitchens.

Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath products, kitchens, laminate and engineered wooden flooring.  Marbonite brand offers a complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special applications like bathrooms / high traffic areas / swimming pools etc.  HRJ has recently launched top-end, premium range of products under Johnson Ceramics International brand.

HRJ has a strong service network of technicians and engineers spread across the country.  This network complements the range of bath products by offering various services like installation, trouble-shooting, repairs, and AMC.  HRJ also has a toll-free customer helpline: 1-800-22-7484.   HRJ's sales volume for the year 2008-09 was 37 million m2 of tiles and plans to achieve 90 million m2 by 2014-15.

RMC Readymix (India) : RMC Readymix (India) is the third-largest ready-mixed concrete manufacturer in India. Set-up in 1996, RMC currently operates 57 ready-mixed concrete plants in 27 cities/towns across the Country. RMC has also ventured into the Aggregates business and operates large quarries and crushers. At present, RMC has 6 quarries across the country. RMC has been at the forefront in setting high standards for plant and machinery, production and quality systems and product services in the ready-mixed concrete industry. RMC plans to scale-up its capacity from 3.87 million m3 at present to 11 million m3 by 2014-15.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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