Mehabe score: 4 G Factor: 5 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 5 and Piotski score of 5.
Description
Gandhi Special Tubes is engaged in the business of manufacture of Seamless and Welded Steel Tubes, Nuts and generation of Wind Power.Site:GANDHITUBE
Market Cap:
Rs 541 cr
Price:
419.0
Trading pe:
15.0x
Book-value:
113/share
Div yield:
2.15 %
Earning yield:
7.29%
Face-value:
5.00/share
52week high:
414.00
52week low:
180.00
Technical Analysis
Stock trades at 419.0, above its 50dma 319.99. It also trades above its 200dma 273.09. The stock remains bullish on techicals
The 52 week high is at 414.00 and the 52week low is at 180.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 39.59%
Weakness
– The company has delivered a poor sales growth of 4.48% over past five years.
Competition
– The industry trades at a mean P/E of 15.1x. Apollo Tricoat trades at the industry’s max P/E of 44.02x. GANDHITUBE trades at a P/E of 15.0x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 8.0. GANDHITUBE has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 20.7%. The max 1- month return was given by Godawari Power: a return of 54.37 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 40.0 cr compared to Rs 21.0 cr for period ended Mar 2020, a rise of 90.5%
Operating Profits reported at Rs 16.0 cr for period ended Mar 2021 vis-vis 6.0 for period ended Mar 2020 .
Operating Margins expanded 1142.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.92 compared to Rs 9.34 for previous quarter ended Dec 2020 and Rs 3.33 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 114.0 cr for period ended Mar 2021 vis-vis sales of Rs 81.0 cr for the period ended Mar 2020, a healthy growth of 28.9%.
Operating margins expanded to 39.0% for period ended Mar 2021 vis-vis 30.0% for period ended Mar 2020, expansion of 900.0 bps.
Net Profit reported at Rs 36.0 cr for period ended Mar 2021 vis-vis sales of Rs 21.0 cr for the period ended Mar 2020, rising 41.7%.
Company recorded a Net Profit CAGR of 1.9% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 25.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 119% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is 69% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.7% vis-vis 1.26% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.91% vis-vis 25.34% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 39.59% – The company has delivered a poor sales growth of 4.48% over past five 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 319.99 and is trading at 419.0, thus bullish price action wise.
