Mehabe score: 6 G Factor: 5 Piotski Score: 1 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 5 and Piotski score of 1.
Description
Poddar Housing & Development is engaged primarily in the business of real estate construction, development and other related activities.Site:PODDARHOUS
Market Cap:
Rs 119 cr
Price:
189.0
Trading pe:
x
Book-value:
294/share
Div yield:
0.00 %
Earning yield:
-0.16%
Face-value:
10.0/share
52week high:
268.70
52week low:
137.95
Technical Analysis
Stock trades at 189.0, above its 50dma 172.07. It also trades above its 200dma 186.86. The stock remains bullish on techicals
The 52 week high is at 268.70 and the 52week low is at 137.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.64 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.18% over past five years.
– has a low return on equity of -5.54% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 43.0x. DLF trades at the industry’s max P/E of 272.52x. PODDARHOUS trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. PODDARHOUS has a G-Factor of 5 and Piotski scoreof 1.
– Average 1 month return for industry is 12.1%. The max 1- month return was given by Oberoi Realty: a return of 22.16 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 12.31 cr compared to Rs 8.64 cr for period ended Mar 2020, a rise of 42.5%
Company reported operating profit of Rs 2.02 cr for period ended Mar 2021, operating profit margin at 16.4 %.
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 -2.28 compared to Rs 9.25 for previous quarter ended Dec 2020 and Rs -7.79 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 54.86 cr for period ended Mar 2021 vis-vis sales of Rs 47.95 cr for the period ended Mar 2020, a healthy growth of 12.6%. The 3 year sales cagr stood at 18.3%.
Operating margins expanded to 8.71% for period ended Mar 2021 vis-vis -48.2% for period ended Mar 2020, expansion of 5691.0 bps.
Net Profit reported at Rs -1.96 cr for period ended Mar 2021 vis-vis sales of Rs -19.59 cr for the period ended Mar 2020, rising 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 -59.07 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -10.0% compared to -6.0% over the last 3 Years. – The stock has given a return of 14% on a 1 Year basis vis-vis a return of -40% over the last 3 Years. – The compounded sales growth on a TTM bassis is 0% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 63% 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 1.7% vis-vis 1.7% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.2% vis-vis 26.84% for Dec 2020
Conclusion
– Stock is trading at 0.64 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.18% over past five years.
– has a low return on equity of -5.54% for last 3 years.
– might be capitalizing the interest cost
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 172.07 and is trading at 189.0 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
