Mehabe score: 4 G Factor: 6 Piotski Score: 4 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 6 and Piotski score of 4.
Description
Aayush Food & Herbs is engaged primarily in the Business of trading of rice in different varieties.Site:539528
Market Cap:
Rs 11.0 cr
Price:
34.0
Trading pe:
9.04x
Book-value:
20.6/share
Div yield:
0.00 %
Earning yield:
22.76%
Face-value:
10.0/share
52week high:
72.95
52week low:
23.65
Technical Analysis
Stock trades at 34.0, above its 50dma 30.2. It also trades above its 200dma 31.39. The stock remains bullish on techicals
The 52 week high is at 72.95 and the 52week low is at 23.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.61% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 26.3x. Hester Bios trades at the industry’s max P/E of 64.0x. 539528 trades at a P/E of 9.04x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 539528 has a G-Factor of 6 and Piotski scoreof 4.
– Average 1 month return for industry is 15.2%. The max 1- month return was given by Syncom Formul.: a return of 49.57 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 58.01 cr compared to Rs 62.46 cr for period ended Mar 2020, a fall of 7.1%
Operating Profits reported at Rs 0.69 cr for period ended Mar 2021 vis-vis 1.07 for period ended Mar 2020 .
Operating Margins contracted -52.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.18 compared to Rs 0.22 for previous quarter ended Dec 2020 and Rs 2.62 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 152.0 cr for period ended Mar 2021 vis-vis sales of Rs 127.0 cr for the period ended Mar 2020, a healthy growth of 16.4%. The 3 year sales cagr stood at -6.8%.
Net Profit reported at Rs 0.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -10.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 12.0% over the last 3 Years. – The stock has given a return of -18% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 481% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 48.72% vis-vis 48.72% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.61% for last 3 years.
-‘s cost of borrowing seems high
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 30.2 and is trading at 34.0 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
