Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 5.
Description
Hindustan Hardy is engaged in the business of designing and manufacturing of Propeller Shafts and other accessories required for automotive, industrial, agricultural and other applications.(Source : 201903 Annual Report Page No: 73)Site:505893
Market Cap:
Rs 27.5 cr
Price:
183.0
Trading pe:
19.4x
Book-value:
58.7/share
Div yield:
0.00 %
Earning yield:
8.48%
Face-value:
10.0/share
52week high:
186.95
52week low:
47.20
Technical Analysis
Stock trades at 183.0, above its 50dma 151.75. It also trades above its 200dma 119.12. The stock remains bullish on techicals
The 52 week high is at 186.95 and the 52week low is at 47.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 3.12 times its book value
-The company has delivered a poor sales growth of -5.67% over past five years.
– has a low return on equity of 5.38% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 32.6x. Minda Industries trades at the industry’s max P/E of 209.16x. 505893 trades at a P/E of 19.4x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 505893 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 6.5%. The max 1- month return was given by Minda Industries: a return of 16.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 15.44 cr compared to Rs 9.25 cr for period ended Mar 2020, a rise of 66.9%
Operating Profits reported at Rs 2.81 cr for period ended Mar 2021 vis-vis 0.27 for period ended Mar 2020 .
Operating Margins expanded 1528.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.28 compared to Rs 6.54 for previous quarter ended Dec 2020 and Rs 0.47 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.61 cr for period ended Mar 2021 vis-vis sales of Rs 39.09 cr for the period ended Mar 2020, a healthy growth of 12.4%. The 3 year sales cagr stood at 5.6%.
Operating margins expanded to 11.54% for period ended Mar 2021 vis-vis 2.02% for period ended Mar 2020, expansion of 952.0 bps.
Net Profit reported at Rs 3.18 cr for period ended Mar 2021 vis-vis sales of Rs 0.03 cr for the period ended Mar 2020, rising 99.1%.
Company recorded a healthy Net Profit CAGR of 51.7% over the last 3 years
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 0.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 251% 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 -11% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 689% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 33.89% vis-vis 33.89% for Dec 2020
Conclusion
– has reduced debt. – Stock is trading at 3.12 times its book value
-The company has delivered a poor sales growth of -5.67% over past five years.
– has a low return on equity of 5.38% for last 3 years.
– might be capitalizing the interest cost
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 151.75 and is trading at 183.0, thus bullish price action wise.
