Mehabe score: 3 G Factor: 1 Piotski Score: 3 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 1 and Piotski score of 3.
Description
Ushdev International is engaged in the business of metals trading with presence in ferrousflat and long products, nonferrous- copper, aluminum, zinc, brass, nickel, etc.Site:511736
Market Cap:
Rs 26.4 cr
Price:
0.78
Trading pe:
0.33x
Book-value:
-91.9/share
Div yield:
0.00 %
Earning yield:
6.06%
Face-value:
1.00/share
52week high:
0.78
52week low:
0.15
Technical Analysis
Stock trades at 0.78, above its 50dma 0.49. It also trades above its 200dma 0.33. The stock remains bullish on techicals
The 52 week high is at 0.78 and the 52week low is at 0.15
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of -70.87% over past five years.
-Contingent liabilities of Rs.1249.62 Cr.
-Promoters have pledged 34.34% of their holding.
-Earnings include an other income of Rs.73.20 Cr.
– has high debtors of 331.59 days.
-Promoter holding has decreased over last 3 years: -4.03%
Competition
– The industry trades at a mean P/E of 44.9x. 3M India trades at the industry’s max P/E of 192.08x. 511736 trades at a P/E of 0.33x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 511736 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 14.9%. The max 1- month return was given by Redington India: a return of 45.3 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 1.59 cr compared to Rs 2.61 cr for period ended Dec 2019, a fall of 39.1%
Company reported negative operating profit of Rs -26.45 cr for period ended Dec 2020. For same period last year, operating profit was -1.43
The EPS for Dec 2020 was Rs 0.06 compared to Rs 0.43 for previous quarter ended Sep 2020 and Rs -0.24 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.0 cr for period ended TTM vis-vis sales of Rs 19.0 cr for the period ended Mar 2020, a fall of 11.8%. The 3 year sales cagr stood at -49.8%.
Operating margins expanded to -512.0% for period ended TTM vis-vis -20940.0% for period ended Mar 2020, expansion of 2042800.0 bps.
Net Profit reported at Rs -96.0 cr for period ended TTM vis-vis sales of Rs -126.0 cr for the period ended Mar 2020, rising 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 stock has given a return of 311% on a 1 Year basis vis-vis a return of -20% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -80% over the last 3 Years. – The compounded profit growth on a TTM basis is -71% vis-vis a compounded profit growth of 37% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 4.1% vis-vis 4.1% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 45.45% vis-vis 45.45% for Dec 2020
Conclusion
– – The company has delivered a poor sales growth of -70.87% over past five years.
-Contingent liabilities of Rs.1249.62 Cr.
-Promoters have pledged 34.34% of their holding.
-Earnings include an other income of Rs.73.20 Cr.
– has high debtors of 331.59 days.
-Promoter holding has decreased over last 3 years: -4.03%
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 0.49 and is trading at 0.78 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
