Mehabe score: 4 G Factor: 3 Piotski Score: 5 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 5.
Description
Swelect Energy Systems is engaged in the business of manufacturing and trading of Solar power projects, off-grid solar photovoltaic modules, based on crystalline silicon technology (c-Si), solar and wind power generation, contract manufacturing services, (Source : 201903 Annual Report Page No: 65)Site:SWELECTES
Market Cap:
Rs 360 cr
Price:
238.0
Trading pe:
12.0x
Book-value:
489/share
Div yield:
0.84 %
Earning yield:
10.59%
Face-value:
10.0/share
52week high:
264.00
52week low:
87.45
Technical Analysis
Stock trades at 238.0, above its 50dma 217.15. It also trades above its 200dma 182.36. The stock remains bullish on techicals
The 52 week high is at 264.00 and the 52week low is at 87.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.49 times its book value
Weakness
– The company has delivered a poor sales growth of 2.60% over past five years.
– has a low return on equity of 0.04% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.4x. A B B trades at the industry’s max P/E of 146.99x. SWELECTES trades at a P/E of 12.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. SWELECTES has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 9.1%. The max 1- month return was given by V-Guard Industri: a return of 21.29 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 78.55 cr compared to Rs 63.06 cr for period ended Mar 2020, a rise of 24.6%
Operating Profits reported at Rs 11.61 cr for period ended Mar 2021 vis-vis 6.86 for period ended Mar 2020 .
Operating Margins expanded 390.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -2.92 compared to Rs 5.88 for previous quarter ended Dec 2020 and Rs -9.82 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 253.0 cr for period ended Mar 2021 vis-vis sales of Rs 252.0 cr for the period ended Mar 2020, a growth of 0.4%. The 3 year sales cagr stood at -4.9%.
Operating margins expanded to 20.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 1200.0 bps.
Net Profit reported at Rs 26.0 cr for period ended Mar 2021 vis-vis sales of Rs -10.0 cr for the period ended Mar 2020, rising 138.5%.
Company recorded a healthy Net Profit CAGR of 17.6% 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 stock has given a return of 148% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -0% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 226% 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 43.63% vis-vis 43.62% for Dec 2020
Conclusion
– Stock is trading at 0.49 times its book value – The company has delivered a poor sales growth of 2.60% over past five years.
– has a low return on equity of 0.04% 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 217.15 and is trading at 238.0 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
