Mehabe score: 5 G Factor: 3 Piotski Score: 3 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 3.
Description
Zuari Global is engaged in the Business of real estate, investment services, engineering services, management services, manufacturing and trading of furniture, manufacturing and sale of sugar and its by products, ethanol and generation of power.Site:ZUARIGLOB
Market Cap:
Rs 273 cr
Price:
92.6
Trading pe:
x
Book-value:
696/share
Div yield:
2.16 %
Earning yield:
0.56%
Face-value:
10.0/share
52week high:
123.90
52week low:
41.50
Technical Analysis
Stock trades at 92.6, above its 50dma 86.93. It also trades above its 200dma 75.63. The stock remains bullish on techicals
The 52 week high is at 123.90 and the 52week low is at 41.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.13 times its book value
-Market value of investments Rs.949.42 Cr. is more than the Market Cap Rs.272.76 Cr.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.57% over past five years.
– has a low return on equity of -9.67% for last 3 years.
-Earnings include an other income of Rs.127.02 Cr.
Competition
– The industry trades at a mean P/E of 40.5x. DLF trades at the industry’s max P/E of 286.26x. ZUARIGLOB trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. ZUARIGLOB has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 12.5%. The max 1- month return was given by Oberoi Realty: a return of 20.02 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 834.0 cr for period ended Mar 2021 vis-vis sales of Rs 771.0 cr for the period ended Mar 2020, a growth of 7.6%. The 3 year sales cagr stood at 14.9%.
Operating margins expanded to -1.0% for period ended Mar 2021 vis-vis -34.0% for period ended Mar 2020, expansion of 3300.0 bps.
Net Profit reported at Rs -93.0 cr for period ended Mar 2021 vis-vis sales of Rs -367.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -4.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 110% on a 1 Year basis vis-vis a return of -15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 80% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.21% vis-vis 1.21% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 35.32% vis-vis 35.69% for Dec 2020
Conclusion
– Stock is trading at 0.13 times its book value
-Market value of investments Rs.949.42 Cr. is more than the Market Cap Rs.272.76 Cr. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.57% over past five years.
– has a low return on equity of -9.67% for last 3 years.
-Earnings include an other income of Rs.127.02 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 86.93 and is trading at 92.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
