6 Greek small & mid-cap stocks (Brief Analysis)

Further to my previous post, I am compile some information for the companies (mid and small cap). The first section presents the companies’ profile and main activities while the next sections relate to the stock performance and the recent financial results.

Company Profiles:

PLASTIKA KRITIS. One of the largest Greek plastics manufacturers and one of the leading European producers of masterbatches and agricultural films. manufactures plastic foils for agricultural uses and polyethylene pipe used to transport water, natural gas and telecommunications wires. The Company is also involved in renewable energy projects. It has a strong international orientation with affiliate companies in France, Romania, Poland, Russia, Turkey and China and exports to more than 50 countries around the world.

IKTINOS quarries, cuts, and processes marble and granite. The Company markets decorative stone products. Iktinos sells its stone in Greece and exports to China, Italy, Germany, France, the United States, the United Arab Emirates, Taiwan, and Bangladesh.

Sarantis Group constitutes one of the leading consumer companies both in Greece and Eastern Europe where it has an important presence. It retails and wholesales perfume, beauty aids, personal hygiene, pharmaceuticals, sunscreen and baby care products. The Company produces beauty aids, detergents, children's wear, pet food and aluminium foil.

THRACE PLASTICS The main activity of the Company is the production and distribution of Polypropylene (PP) products. The group operates in the production four basic product categories: Synthetic woven fabrics, synthetic non-woven fabrics, construction of F.I.B.Cs and rigid packaging products. The Group maintains production and trade facilities in Greece, Scotland, Northern Ireland, Ireland, U.S.A., Sweden, Norway, Serbia, Bulgaria, Romania and Australia.

Elton Group is the leading agent and distributor of industrial raw materials in Greece and the Balkan market. It wholesales chemicals and products used in the production of pharmaceuticals, cosmetics, detergents, paints, food, and alcoholic beverages.

Plaisio Computers is a multi-product, multi-channel provider under one brand in the area of IT and office supplies. The Company imports, manufactures and retails computers, peripherals, IT network products, office supplies, and telecom products. Plaisio also offers customer service.

Stock Performance

The table below shows the 1-month, 6-month and year-to-date return for the stocks. While the first two stocks’ performance does not seem to be satisfying, ELTON, PLAISION and SARANTIS had outperformed the MID&SMALL Cap Index and offered 35.14%, 60.86% & 46.5% return respectively. IKTINOS just tracked the benchmark offering approximately the same return (19.2%). 

Financial Results and Multiples

The 9-month period earnings information below suggest that companies have achieved a two digit growth in their net profits expect for the Crete and Thrace plastics.

The table below shows a few valuation metrics for the aforementioned companies.

The most noticeable example is that of IKTINOS. The company has managed to increase its earnings by 69% for 9-month period, has a ROE of 11% and the highest profit margin among the companies analysed. In addition the company has a “good” interest cover ratio and is not heavily exposed to the Greek market (78.5% of its sales come from exports). However the stock has underperformed the mid&small cap index.

Furthermore, Plaisio computers seems interesting investment as the company’s earnings rose 75% and it offers a Return on Equity of almost 20% and a quite low P/E ratio (9.46). The financial health of the company is excellent considering the interest cover ratio which is as high as 13.09.

**The information contained in this post as well as any information within this website is intended for informational purposes only. This is not a recommendation, offer or solicitation to purchase or sell any stock or other securities.