Mehabe score: 3 G Factor: 4 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 4 and Piotski score of 5.
Description
Sagardeep Alloys Is engaged in the Manufacture of basic precious and Non ferrous alloys and wholesale of Metals and Metal OresSite:SAGARDEEP
Market Cap:
Rs 79.6 cr
Price:
46.6
Trading pe:
x
Book-value:
14.3/share
Div yield:
0.00 %
Earning yield:
-0.22%
Face-value:
10.0/share
52week high:
98.60
52week low:
29.30
Technical Analysis
Stock trades at 46.6, above its 50dma 41.44. It also trades above its 200dma 43.59. The stock remains bullish on techicals
The 52 week high is at 98.60 and the 52week low is at 29.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 103.20 to 78.62 days.
Weakness
– Stock is trading at 3.27 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -23.90% over past five years.
– has a low return on equity of 3.29% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.3x. Ram Ratna Wires trades at the industry’s max P/E of 40.83x. SAGARDEEP trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 8.0. SAGARDEEP has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 13.7%. The max 1- month return was given by Ram Ratna Wires: a return of 46.45 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 21.26 cr compared to Rs 9.15 cr for period ended Mar 2020, a rise of 132.3%
Operating Profits reported at Rs 1.38 cr for period ended Mar 2021 vis-vis 0.2 for period ended Mar 2020 .
Operating Margins expanded 430.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.65 compared to Rs 0.17 for previous quarter ended Dec 2020 and Rs -0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 65.48 cr for period ended Mar 2021 vis-vis sales of Rs 33.8 cr for the period ended Mar 2020, a healthy growth of 48.4%. The 3 year sales cagr stood at 1.6%.
Operating margins shrank to 1.6% for period ended Mar 2021 vis-vis 3.02% for period ended Mar 2020, contraction of 142.0 bps.
Net Profit reported at Rs 0.14 cr for period ended Mar 2021 vis-vis sales of Rs 0.23 cr for the period ended Mar 2020, falling 64.3%.
Company reported a poor Net Profit CAGR of -33.2% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 3.0% over the last 3 Years. – The stock has given a return of -24% on a 1 Year basis vis-vis a return of 39% over the last 3 Years. – The compounded sales growth on a TTM bassis is 52% vis-vis a compounded sales growth of -26% over the last 3 Years. – The compounded profit growth on a TTM basis is -203% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter
-Debtor days have improved from 103.20 to 78.62 days. – Stock is trading at 3.27 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -23.90% over past five years.
– has a low return on equity of 3.29% for last 3 years.
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 41.44 and is trading at 46.6, thus bullish price action wise.
