Mehabe score: 3 G Factor: 1 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 1 and Piotski score of 3.
Description
Shradha Infraprojects (Nagpur) is a pioneer name in Central India delivering Eco-Friendly Engineering designs & construction services.Site:SHRADHA
Market Cap:
Rs 51.7 cr
Price:
48.6
Trading pe:
35.4x
Book-value:
58.8/share
Div yield:
0.00 %
Earning yield:
1.33%
Face-value:
10.0/share
52week high:
76.75
52week low:
20.24
Technical Analysis
Stock trades at 48.6, above its 50dma 45.27. It also trades above its 200dma 48.19. The stock remains bullish on techicals
The 52 week high is at 76.75 and the 52week low is at 20.24
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.83 times its book value
Weakness
– has a low return on equity of 5.77% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3.11 Cr.
Competition
– The industry trades at a mean P/E of 40.5x. DLF trades at the industry’s max P/E of 274.68x. SHRADHA trades at a P/E of 35.4x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. SHRADHA has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 9.6%. The max 1- month return was given by Oberoi Realty: a return of 18.07 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.41 cr compared to Rs 0.58 cr for period ended Mar 2020, a fall of 29.3%
Company reported negative operating profit of Rs -0.18 cr for period ended Mar 2021. For same period last year, operating profit was -0.2
The EPS for Mar 2021 was Rs 0.5 compared to Rs 0.28 for previous quarter ended Dec 2020 and Rs 0.41 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.25 cr for period ended Mar 2021 vis-vis sales of Rs 3.01 cr for the period ended Mar 2020, a fall of 140.8%. The 3 year sales cagr stood at -51.1%.
Operating margins shrank to -64.8% for period ended Mar 2021 vis-vis -8.97% for period ended Mar 2020, contraction of 5583.0 bps.
Net Profit reported at Rs 1.68 cr for period ended Mar 2021 vis-vis sales of Rs 2.1 cr for the period ended Mar 2020, falling 25.0%.
Company reported a poor Net Profit CAGR of -23.1% over the last 3 years
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 -22.24 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 131% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -71% vis-vis a compounded sales growth of -57% over the last 3 Years. – The compounded profit growth on a TTM basis is -39% vis-vis a compounded profit growth of -19% over the last 3 Years.
Ratios
Conclusion
– Stock is trading at 0.83 times its book value – has a low return on equity of 5.77% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3.11 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 45.27 and is trading at 48.6 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
