Mehabe score: 2 G Factor: 4 Piotski Score: 7 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 7.
Description
HLV is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.Site:HLVLTD
Market Cap:
Rs 593 cr
Price:
9.4
Trading pe:
x
Book-value:
6.87/share
Div yield:
0.00 %
Earning yield:
-9.13%
Face-value:
2.00/share
52week high:
12.50
52week low:
4.20
Technical Analysis
Stock trades at 9.4, above its 50dma 7.81. It also trades above its 200dma 6.32. The stock remains bullish on techicals
The 52 week high is at 12.50 and the 52week low is at 4.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.54% over past five years.
– has a low return on equity of 9.57% for last 3 years.
-Contingent liabilities of Rs.917.93 Cr.
Competition
– The industry trades at a mean P/E of 57.4x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. HLVLTD trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. HLVLTD has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 19.6%. The max 1- month return was given by Barbeque-Nation: a return of 54.67 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.02 cr compared to Rs 37.54 cr for period ended Mar 2020, a fall of 76.0%
Company reported negative operating profit of Rs -14.84 cr for period ended Mar 2021. For same period last year, operating profit was -14.59
The EPS for Mar 2021 was Rs -0.02 compared to Rs -0.18 for previous quarter ended Dec 2020 and Rs -0.27 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.0 cr for period ended Mar 2021 vis-vis sales of Rs 146.0 cr for the period ended Mar 2020, a fall of 668.4%. The 3 year sales cagr stood at -48.4%.
Operating margins shrank to -280.0% for period ended Mar 2021 vis-vis -31.0% for period ended Mar 2020, contraction of 24900.0 bps.
Net Profit reported at Rs -36.0 cr for period ended Mar 2021 vis-vis sales of Rs 194.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 47.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 69% on a 1 Year basis vis-vis a return of -21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -69% vis-vis a compounded sales growth of -41% over the last 3 Years. – The compounded profit growth on a TTM basis is -130% vis-vis a compounded profit growth of 133% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 50.46% vis-vis 50.46% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.54% over past five years.
– has a low return on equity of 9.57% for last 3 years.
-Contingent liabilities of Rs.917.93 Cr.
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 7.81 and is trading at 9.4, thus bullish price action wise.
