Mehabe score: 2 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
Nila Infrastructures is engaged in the business of Construction of Buildings Carried out on own account basis or on a fee or contract basis.Site:NILAINFRA
Market Cap:
Rs 244 cr
Price:
6.2
Trading pe:
x
Book-value:
3.27/share
Div yield:
0.00 %
Earning yield:
3.66%
Face-value:
1.00/share
52week high:
8.30
52week low:
3.60
Technical Analysis
Stock trades at 6.2, above its 50dma 5.15. It also trades above its 200dma 4.98. The stock remains bullish on techicals
The 52 week high is at 8.30 and the 52week low is at 3.60
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Earnings include an other income of Rs.11.75 Cr.
-Debtor days have increased from 71.02 to 96.10 days.
Competition
– The industry trades at a mean P/E of 17.4x. Macrotech Devel. trades at the industry’s max P/E of 18.44x. NILAINFRA trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 6.0. NILAINFRA has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 16.2%. The max 1- month return was given by JP Associates: a return of 79.62 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 37.23 cr compared to Rs 82.06 cr for period ended Mar 2020, a fall of 54.6%
Operating Profits reported at Rs 9.14 cr for period ended Mar 2021 vis-vis 5.11 for period ended Mar 2020 .
Operating Margins expanded 1832.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.12 compared to Rs 0.04 for previous quarter ended Dec 2020 and Rs 0.05 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 96.85 cr for period ended Mar 2021 vis-vis sales of Rs 243.54 cr for the period ended Mar 2020, a fall of 151.5%. The 3 year sales cagr stood at -21.8%.
Operating margins shrank to 10.02% for period ended Mar 2021 vis-vis 11.69% for period ended Mar 2020, contraction of 167.0 bps.
Net Profit reported at Rs -0.65 cr for period ended Mar 2021 vis-vis sales of Rs 16.49 cr for the period ended Mar 2020, falling 0%.
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 13.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 23% on a 1 Year basis vis-vis a return of -23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -38% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -116% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 5.67% vis-vis 5.69% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 32.43% vis-vis 32.41% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Earnings include an other income of Rs.11.75 Cr.
-Debtor days have increased from 71.02 to 96.10 days.
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 5.15 and is trading at 6.2 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
