Mehabe score: 4 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
Arihant Superstructures is engaged in the business of Development and construction of properties.Site:ARIHANTSUP
Market Cap:
Rs 373 cr
Price:
90.7
Trading pe:
49.3x
Book-value:
29.9/share
Div yield:
0.00 %
Earning yield:
5.90%
Face-value:
10.0/share
52week high:
106.90
52week low:
17.70
Technical Analysis
Stock trades at 90.7, above its 50dma 71.83. It also trades above its 200dma 46.58. The stock remains bullish on techicals
The 52 week high is at 106.90 and the 52week low is at 17.70
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.04 times its book value
– has low interest coverage ratio.
– has a low return on equity of 8.68% for last 3 years.
-Dividend payout has been low at 10.74% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 41.2x. Phoenix Mills trades at the industry’s max P/E of 261.19x. ARIHANTSUP trades at a P/E of 49.3x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. ARIHANTSUP has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 10.5%. The max 1- month return was given by Arihant Super.: a return of 32.02 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 124.0 cr compared to Rs 60.0 cr for period ended Mar 2020, a rise of 106.7%
Operating Profits reported at Rs 20.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins contracted -553.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.28 compared to Rs 1.25 for previous quarter ended Dec 2020 and Rs 1.68 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 270.0 cr for period ended Mar 2021 vis-vis sales of Rs 233.0 cr for the period ended Mar 2020, a healthy growth of 13.7%. The 3 year sales cagr stood at 12.8%.
Net Profit reported at Rs 16.0 cr for period ended Mar 2021 vis-vis sales of Rs 6.0 cr for the period ended Mar 2020, rising 62.5%.
Company recorded a Net Profit CAGR of 7.2% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 232% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 46% vis-vis a compounded profit growth of -44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.35% vis-vis 0.45% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 23.96% vis-vis 22.32% for Dec 2020
Conclusion
– – Stock is trading at 3.04 times its book value
– has low interest coverage ratio.
– has a low return on equity of 8.68% for last 3 years.
-Dividend payout has been low at 10.74% of profits over 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 71.83 and is trading at 90.7 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
