I am a novice investor and have taken a keen interest in Pudumjee, i see it as a long term investment here is my 2% on what i feel about the compnay. Please let me know your opinions and also tell me if there is something i may have missed.
Pudumjee Paper Products Limited:
The Good:
Current ratio:1.06 (should be greater than one,
implies liabilities and assets are about the same )
Quick Ratio:0.77(should of been greater than one
is excludes inventory for the calculations)
debt/equity:0.29 (is very low implying equity outweighs dept )
Inventory Turnover Ratio: 10.20 ( the higher the better and it has increased
form last year of 4.91)
Operating Profit Margin(%):9.19 (increased from last year 5.79)
Also: the Gross Profit Margin,Cash Profit Margin,Net Profit Margin,
have also increased from last year
So all in all the balance sheet looks good.
Also GST gets reduced for paper and paper products so it could help in q3 numbers
Stock is trading at 1.18 times its book value
Return on Equity is 8.83 which is very good compared to its peers
Return on Assets is 5.14 is also good compared to peers
The Bad:
Yashvardhan Jatia Trust sold 9,465,201 in march 21, which basically means
the promoter are selling their shares.Yet their holdings are still 66%
Cash flows to long term debt: 2.21 which is low compared to its peers
Disclosure:Invested