Mehabe score: 2 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
KDDL is primarily engaged in the business of manufacturing dials, watch hands and precision components.(Source : 201903 Annual Report Page No:101)Site:KDDL
Market Cap:
Rs 470 cr
Price:
369.0
Trading pe:
x
Book-value:
135/share
Div yield:
0.54 %
Earning yield:
3.04%
Face-value:
10.0/share
52week high:
436.00
52week low:
116.40
Technical Analysis
Stock trades at 369.0, above its 50dma 300.71. It also trades above its 200dma 253.31. The stock remains bullish on techicals
The 52 week high is at 436.00 and the 52week low is at 116.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Promoter holding has increased by 1.51% over last quarter.
-‘s median sales growth is 18.00% of last 10 years
Weakness
– Stock is trading at 2.74 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.65% over past five years.
– has a low return on equity of 8.06% for last 3 years.
-Earnings include an other income of Rs.18.13 Cr.
Competition
– The industry trades at a mean P/E of 15.4x. KDDL Ltd trades at the industry’s max P/E of 15.45x. KDDL trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 5.0. KDDL has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 6.7%. The max 1- month return was given by KDDL Ltd: a return of 23.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 178.19 cr compared to Rs 137.27 cr for period ended Mar 2020, a rise of 29.8%
Operating Profits reported at Rs 27.29 cr for period ended Mar 2021 vis-vis 11.89 for period ended Mar 2020 .
Operating Margins expanded 665.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.12 compared to Rs 6.12 for previous quarter ended Dec 2020 and Rs -2.64 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 549.0 cr for period ended Mar 2021 vis-vis sales of Rs 652.0 cr for the period ended Mar 2020, a fall of 18.8%. The 3 year sales cagr stood at 3.0%.
Net Profit reported at Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs -1.0 cr for the period ended Mar 2020, rising 116.7%.
Company reported a poor Net Profit CAGR of -29.3% 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 -0.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 116% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -204% 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 19.9% vis-vis 19.77% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.94% vis-vis 25.17% for Dec 2020
Conclusion
– Promoter holding has increased by 1.51% over last quarter.
-‘s median sales growth is 18.00% of last 10 years – Stock is trading at 2.74 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.65% over past five years.
– has a low return on equity of 8.06% for last 3 years.
-Earnings include an other income of Rs.18.13 Cr.
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 300.71 and is trading at 369.0 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
