Mehabe score: 3 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
NILE is primarily engaged in the manufacture of Pure Lead for battery consumption.Site:530129
Market Cap:
Rs 130 cr
Price:
434.0
Trading pe:
14.7x
Book-value:
476/share
Div yield:
0.23 %
Earning yield:
10.28%
Face-value:
10.0/share
52week high:
462.00
52week low:
202.10
Technical Analysis
Stock trades at 434.0, above its 50dma 382.8. It also trades above its 200dma 327.73. The stock remains bullish on techicals
The 52 week high is at 462.00 and the 52week low is at 202.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.91 times its book value
Weakness
– The company has delivered a poor sales growth of 8.97% over past five years.
– has a low return on equity of 12.49% for last 3 years.
-Dividend payout has been low at 5.48% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 20.6x. Ram Ratna Wires trades at the industry’s max P/E of 32.47x. 530129 trades at a P/E of 14.7x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. 530129 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.7%. The max 1- month return was given by Ram Ratna Wires: a return of 14.22 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 171.91 cr compared to Rs 132.12 cr for period ended Mar 2020, a rise of 30.1%
Operating Profits reported at Rs 9.93 cr for period ended Mar 2021 vis-vis 2.31 for period ended Mar 2020 .
Operating Margins expanded 402.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 19.05 compared to Rs 20.09 for previous quarter ended Dec 2020 and Rs 2.7 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 536.0 cr for period ended Mar 2021 vis-vis sales of Rs 593.0 cr for the period ended Mar 2020, a fall of 10.6%. The 3 year sales cagr stood at -5.4%.
Operating margins expanded to 5.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 14.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, rising 21.4%.
Company reported a poor Net Profit CAGR of -15.3% 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 8.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 99% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -31% vis-vis a compounded profit growth of -26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 49.57% vis-vis 49.57% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.91 times its book value – The company has delivered a poor sales growth of 8.97% over past five years.
– has a low return on equity of 12.49% for last 3 years.
-Dividend payout has been low at 5.48% of profits over last 3 years
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 382.8 and is trading at 434.0 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
