Pee Cee Cosma Sope Ltd | Long term view for small cap company

Pee Cee Cosma Sope Ltd stock

Market Cap ₹ 57.1 Cr.

Current Price ₹ 216

High / Low ₹ 252 / 86.0

Stock P/E 22.9

Book Value ₹ 115

ROCE 10.1 %

ROE 8.51 %

Face Value ₹ 10.0

Industry PE 25.6

Profit growth 47.3 %

Promoter holding 74.6 %

EPS ₹ 9.41

ROE 3Yr 10.9 %

Qtr Profit Var 1,218 %

Opert Prft Gwth 84.7 %

Technical chart study

Monthly chart

Above is the monthly chart of mention stock, and as per chart we can see some strong pattern development with strong volume backing.
as per chart its has given “ascending triangle” breakout, and even its moving in rising channel, as per ascending triangle it has given breakout at 200 level and as per pattern height we can expect to get target of 340, and if it goes for 340 target then eventually it will do breakout of rising channel too, and as per this pattern it can even go further to get target of 440 also.

so overall strong long term chart setup, will try to get target of formed patterns on chart, and even then after it will move in higher high and higher low formation to get for some new levels with new formations.

About Pee Cee Cosma Sope Ltd

Pee Cee Cosma Sope Ltd. is an Indian company that manufactures and markets a variety of personal care and cleaning products, including soaps, detergents, and oil cakes. The company was founded in 1947 and is headquartered in Agra, India.

Pee Cee Cosma Sope Ltd.’s most popular brand is Doctor Soap, which is a range of bathing soaps that are marketed as being healthy and hygienic. The company also produces a variety of other soaps, including laundry soaps, dishwashing soaps, and bathing soaps for babies.

In addition to soaps, Pee Cee Cosma Sope Ltd. also produces a variety of detergents, including washing powders, detergent cakes, and liquid detergents. The company’s detergents are marketed as being effective and affordable.

Pee Cee Cosma Sope Ltd.’s oil cakes are used in the production of soaps and detergents. The company’s oil cakes are made from vegetable oils and are a renewable resource.

Pee Cee Cosma Sope Ltd. has a strong distribution network in India. The company’s products are available in most parts of the country.

The company’s mission is to create stronger brands by developing superior products through amalgamation of modern as well as traditional manufacturing processes, also by introducing new product range and by strengthening distribution network with reach to the remotest part of rural & semi urban India providing value, satisfaction and delightful brand experience.

Here are some of the company’s achievements:

  • The company was awarded the ISO 9001:2000 certification in 2004.
  • The company was awarded the FICCI Export Award in 2010.
  • The company was awarded the CNBC Awaaz Emerging Brand Award in 2012.

Pee Cee Cosma Sope Ltd. is a leading manufacturer of personal care and cleaning products in India. The company is committed to providing high-quality products that are affordable and accessible to consumers.

Future Plans

Pee Cee Cosma Sope Ltd. has a number of future plans, including:

  • Expanding its product range to include new personal care and cleaning products.
  • Strengthening its distribution network in India and overseas.
  • Investing in research and development to develop new and innovative products.
  • Increasing its focus on sustainability and environmental protection.

The company is also planning to expand its manufacturing capacity to meet the growing demand for its products.

Here are some specific details about the company’s future plans:

  • The company plans to launch a new range of personal care products, including shampoos, conditioners, and body washes.
  • The company plans to expand its distribution network to cover more parts of India and overseas.
  • The company plans to invest in research and development to develop new and innovative products, such as biodegradable soaps and detergents.
  • The company plans to increase its focus on sustainability and environmental protection by using renewable resources in its manufacturing process and by reducing its carbon footprint.

Pee Cee Cosma Sope Ltd. is confident that its future plans will help it to achieve its goal of becoming a leading global manufacturer of personal care and cleaning products.

Here are some of the challenges that the company may face in achieving its future plans:

  • Increased competition from other domestic and international companies.
  • Changing consumer preferences.
  • Economic volatility.
  • Environmental regulations.

Despite these challenges, Pee Cee Cosma Sope Ltd. is confident that it has the strengths and resources to overcome them and achieve its future goals.

Distribution and expansion for future growth with strong Margins

Pee Cee Cosma Sope Ltd. can improve its profit margin by optimizing its distribution plans at a pan-India level. Here are some specific ideas:

  • Focus on high-potential markets. The company should identify the markets where it has the greatest potential for growth and focus its distribution efforts on those markets. This could involve increasing the number of distributors in those markets, or investing in marketing and advertising campaigns to reach more consumers.
  • Use a variety of distribution channels. The company should use a variety of distribution channels to reach consumers, including traditional channels such as grocery stores and pharmacies, as well as newer channels such as online retailers and direct-to-consumer sales. This will help the company to reach a wider audience and increase its sales.
  • Reduce distribution costs. The company should look for ways to reduce its distribution costs. This could involve negotiating better deals with distributors, or using more efficient transportation methods.
  • Improve inventory management. The company should improve its inventory management to ensure that it has the right products in the right place at the right time. This will help to reduce stockouts and spoilage, which can lead to lost sales and increased costs.

By implementing these distribution plans, Pee Cee Cosma Sope Ltd. can improve its profit margin and achieve its long-term goals.

Here are some additional ideas that the company could consider:

  • Partner with other companies. The company could partner with other companies to reach new markets or to provide a wider range of products and services. For example, the company could partner with a grocery store chain to sell its products in more stores, or it could partner with a cosmetics company to develop a line of personal care products.
  • Expand into new markets. The company could expand into new markets, such as overseas markets, to reach new consumers and grow its sales.
  • Invest in research and development. The company could invest in research and development to develop new products and improve its existing products. This could help the company to stay ahead of the competition and attract new customers.

By implementing these ideas, Pee Cee Cosma Sope Ltd. can improve its distribution plans and achieve its long-term goals.

SORT analysis

Here are some specific examples of strengths, opportunities, risks, and threats for Pee Cee Cosma Sope Ltd.:

Strengths:

  • Strong brand recognition in India
  • Loyal customer base
  • Experienced workforce
  • Wide product range
  • Good distribution network

Opportunities:

  • Growing demand for personal care and cleaning products in India
  • Expansion into new markets
  • Acquisition of other companies
  • Development of new products

Risks:

  • Economic downturn
  • Changes in consumer preferences
  • Entry of new competitors
  • Increased competition from international companies

Threats:

  • Financial problems
  • Management weaknesses
  • Product recalls
  • Environmental regulations

By conducting a SORT analysis, Pee Cee Cosma Sope Ltd. can identify the factors that are most likely to affect its future success. This information can then be used to develop strategies that will help the company to mitigate risks and capitalize on opportunities.

Fundamental Data analysis with the help of Yearly Results

company having market of around 60cr which comes under small cap, having a eps of nearly 10 rs on face value of 10 rs., stock pe also near to the industry pe, and OPM is nearly 4%, it means that as per its capacity company able produce good sales numbers(market cap 57cr and annual sales FY2022-23 is 124 cr) but not able to generate expected profit margins.

for better analysis prefer below data and fundamental development chart of company.

Graphical Representation of Fundamental Data

above data and chart clearly shows that, company strongly improving on their business buy rising their sales, but net profit and other factors are still stable so we expect there is still bigger scope for growth in other factors, and if company able to do that in coming days then its going to affect directly and strongly on companies performance.

Final Take

Strong technical breakout, good company history with further expansions and stable yet improving and growing fundamental data, all these factor suggest that company is giving stable performance and looking to grow further, and this can lead stable price action in stock too.

so chart breakout and stable performance can hint us that stock will move further as per technical patterns for expected targets till 440-800-1200 also in coming few years.

keeping watch on quarterly performance is very much important to calculate future growth of company.

Updated: July 31, 2023 — 5:42 pm

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