Mehabe score: 5 G Factor: 3 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 3 and Piotski score of 3.
Description
Maestros Electronics and Telecommunications Systems Limited manufactures and trades in electronical, medical, and telecommunication instruments in India. It operates through two divisions, Electronics & Telecommunication Instrument, and Telemedicine Instrument.Site:538401
Market Cap:
Rs 41.9 cr
Price:
76.0
Trading pe:
8.16x
Book-value:
44.7/share
Div yield:
0.00 %
Earning yield:
18.79%
Face-value:
10.0/share
52week high:
147.50
52week low:
48.95
Technical Analysis
Stock trades at 76.0, above its 50dma 73.53. However it is trading below its 200dma 83.89. The stock remains weak though short term bullish momentum supports price action. It needs to close above 83.89 for bullish price action to continue
The 52 week high is at 147.50 and the 52week low is at 48.95
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -3.92% over past five years.
– has a low return on equity of 1.13% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.9x. Jubilant Ingrevia trades at the industry’s max P/E of 142.45x. 538401 trades at a P/E of 8.16x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 538401 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 16.3%. The max 1- month return was given by Jubilant Ingrevia: a return of 33.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.06 cr compared to Rs 3.34 cr for period ended Mar 2020, a fall of 38.3%
Operating Profits reported at Rs 0.1 cr for period ended Mar 2021 vis-vis 0.2 for period ended Mar 2020 .
Operating Margins contracted -113.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.8 compared to Rs -1.54 for previous quarter ended Dec 2020 and Rs -0.13 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 47.55 cr for period ended Mar 2021 vis-vis sales of Rs 13.54 cr for the period ended Mar 2020, a healthy growth of 71.5%. The 3 year sales cagr stood at 72.8%.
Operating margins expanded to 17.85% for period ended Mar 2021 vis-vis 11.82% for period ended Mar 2020, expansion of 603.0 bps.
Net Profit reported at Rs 5.64 cr for period ended Mar 2021 vis-vis sales of Rs 0.37 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 -3.55 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 31% on a 1 Year basis vis-vis a return of 45% over the last 3 Years. – The compounded sales growth on a TTM bassis is 283% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 1066% vis-vis a compounded profit growth of -19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.2% vis-vis 0.2% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 35.99% vis-vis 35.99% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -3.92% over past five years.
– has a low return on equity of 1.13% for 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 73.53 and is trading at 76.0 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
