Mehabe score: 3 G Factor: 4 Piotski Score: 5 The stock has a rating 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 4 and Piotski score of 5.
Description
Kalyani Forge is an engineering company with an expertise in metal forming built over deep experience and talent of our people. We make forged, machined and assembled products for a variety of customers in industries like automotive, construction, power generation, marine, railway, and industrial goods.Site:KALYANIFRG
Market Cap:
Rs 83.8 cr
Price:
232.0
Trading pe:
x
Book-value:
269/share
Div yield:
0.43 %
Earning yield:
-5.73%
Face-value:
10.0/share
52week high:
239.65
52week low:
122.55
Technical Analysis
Stock trades at 232.0, above its 50dma 193.76. It also trades above its 200dma 171.08. The stock remains bullish on techicals
The 52 week high is at 239.65 and the 52week low is at 122.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.86 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.55% over past five years.
– has a low return on equity of 2.04% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 45.4x. Bharat Forge trades at the industry’s max P/E of 457.0x. KALYANIFRG trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. KALYANIFRG has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 15.0%. The max 1- month return was given by M M Forgings: a return of 29.8 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 66.88 cr compared to Rs 46.56 cr for period ended Mar 2020, a rise of 43.6%
Company reported operating profit of Rs 4.76 cr for period ended Mar 2021, operating profit margin at 7.1 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs -1.07 compared to Rs 7.06 for previous quarter ended Dec 2020 and Rs -14.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 181.0 cr for period ended Mar 2021 vis-vis sales of Rs 201.0 cr for the period ended Mar 2020, a fall of 11.0%. The 3 year sales cagr stood at -11.3%.
Operating margins expanded to 7.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs -2.0 cr for period ended Mar 2021 vis-vis sales of Rs -7.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -6.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 64% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -27% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -1464% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.39% vis-vis 41.39% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.86 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.55% over past five years.
– has a low return on equity of 2.04% for last 3 years.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 193.76 and is trading at 232.0, thus bullish price action wise.
