Let’s have a complete understanding of Panasonic Carbon.
Table of Contents
BUSINESS ANALYSIS
Panasonic Carbon was founded in 1982.
The company signed a Foreign Collaboration Agreement with Matsushita Group (Panasonic Corporation, Japan) for obtaining assistance related to manufacturing and sale of Midget Electrodes (Carbon Rods).
Panasonic Carbon has emerged as the sole manufacturer of high standard carbon rods in India and a leading manufacturer of Carbon Rods in the world.
The company has the capability to manufacture around 40 sizes and 6 different grades of Carbon rods.
KEY PRODUCT
The Company manufactures about 40 Sizes and 6 Grades of Carbon rods. These can be classified into Five Major Categories such as:
· UM – 1 (R – 20/D Size)
· UM – 2 (R – 14/C Size)
· UM – 3 (R – 6/AA Size)
· UM – 4 (R – 03/AAA Size)
· Special Size Carbon Rods
FINANCIAL KEY METRICS
| Market Capitalization | ₹ 253 |
| Stock P/E | 12.2 |
| Industry P/E | 151 |
| ROCE | 21.1% |
| ROE | 15.7% |
| Debt to Equity ratio | 0 |
The Market Capitalization of Panasonic Carbon is ₹ 253 Cr.
The price to earnings ratio of Panasonic Carbon is 12.3 which is very less as compared to the industry price to earnings ratio of 153.
Panasonic Carbon has a return on capital employed of 21.1% which shows that the company is providing a good return on the capital invested.
The return on equity of Panasonic Carbon is 15.7% which is also decent as per the stock’s valuations.
The debt to equity ratio of Panasonic Carbon is 0 which is an ideal value for any company.
Company has been maintaining a healthy dividend pay-out of 32.61%.
FINANCIAL ANALYSIS
Figures in Rs. Crores
| Balance Sheet | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
| Share Capital | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| Reserves | 51 | 51 | 51 | 54 | 57 | 61 | 69 | 85 | 91 | 98 | 109 | 123 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | 17 | 8 | 8 | 9 | 9 | 11 | 12 | 7 | 7 | 6 | 6 | 6 |
| Total Liabilities | 73 | 64 | 64 | 68 | 71 | 77 | 86 | 97 | 103 | 109 | 119 | 134 |
| Fixed Assets | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 10 | 9 | 8 | 7 | 6 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 68 | 60 | 60 | 64 | 67 | 74 | 83 | 87 | 93 | 101 | 112 | 128 |
| Total Assets | 73 | 64 | 64 | 68 | 71 | 77 | 86 | 97 | 103 | 109 | 119 | 134 |
As per the above table, the reserves in the company are constantly increasing which is a good sign that the investors are interested in Panasonic Carbon shares.
The Borrowings are also 0 which means that the company is restraining itself from borrowing money from any lender.
For the quarter ended 30-6-2021, Panasonic Carbon noted a sales of ₹ 12.98 Cr.
The operating profit of Panasonic Carbon was ₹ 4.53 Cr in the last quarter ended 30-6-2021.
The Net profit of Panasonic Carbon was ₹ 4.63 Cr in the quarter ended 30-6-2021.
Figures in Rs. Crores
| Quarterly Results | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 |
| Sales | 11.35 | 10.94 | 10.8 | 10.93 | 12.45 | 12.53 | 9.1 | 7.92 | 13.15 | 12.86 | 14.97 | 12.98 |
| Expenses | 8.42 | 8.23 | 8.42 | 7.69 | 8.26 | 7.65 | 6.01 | 5.72 | 7.6 | 7.73 | 9.32 | 8.45 |
| Operating Profit | 2.93 | 2.71 | 2.38 | 3.24 | 4.19 | 4.88 | 3.09 | 2.2 | 5.55 | 5.13 | 5.65 | 4.53 |
| Other Income | 1.9 | 1.66 | 2.08 | 2.09 | 2.1 | 2.04 | 2.23 | 2.06 | 1.97 | 1.88 | 2.01 | 1.92 |
| Profit before tax | 4.51 | 4.03 | 4.11 | 5.02 | 5.97 | 6.62 | 5 | 4 | 7.26 | 6.75 | 7.4 | 6.2 |
| Tax % | 0.306 | 0.2804 | 0.3041 | 0.2968 | 0.1926 | 0.2613 | 0.258 | 0.2575 | 0.2562 | 0.2533 | 0.2554 | 0.2516 |
| Net Profit | 3.12 | 2.9 | 2.85 | 3.53 | 4.83 | 4.89 | 3.71 | 2.97 | 5.39 | 5.04 | 5.5 | 4.63 |
| EPS in Rs | 6.5 | 6.04 | 5.94 | 7.35 | 10.06 | 10.19 | 7.73 | 6.19 | 11.23 | 10.5 | 11.46 | 9.65 |
SHARE HOLDING SYNOPSIS
| Share Holding | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 |
| Promoters | 63.31 | 63.31 | 63.31 | 63.31 | 63.31 | 63.3 | 63.3 | 63.3 | 63.3 | 63.3 | 63.3 | 63.3 |
| DIIs | 0 | 0 | 0 | 0 | 0 | 0.04 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 36.69 | 36.69 | 36.69 | 36.69 | 36.69 | 36.66 | 36.7 | 36.7 | 36.7 | 36.7 | 36.7 | 36.7 |
This is a brief overview of the financials of Panasonic Carbon which showcases the dominance in their respective market.
Now, let’s deep dive into the technical of Panasonic share price.
CHART PATTERN ANALYSIS
A falling wedge pattern is formed which is highlighted in the daily timeframe.
As per the current chart, a breakout is not yet achieved, but with such good financials the stock will achieve its technical target.
A good target of 20% can be easily achieved if an individual makes a position in this stock.
The Panasonic share price on 12th October 2021 is ₹ 528.
MOVING AVERAGE
For Panasonic share price analysis, we are taking 9 days and 21 days moving averages.
As per the current chart, the 9 days moving average has not crossed the 21 days moving average, but this will also happen sometime.
The 9 days moving average is indicated in red while the 21 days moving average is blue.
SUPER TREND
Super trend indicator is giving a buy signal in a 2 hours time frame.
One should not decide based on the super trend instead should focus on the other aspects and then decide.