Mehabe score: 4 G Factor: 2 Piotski Score: 4 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 4.
Description
Jaypee Infratech is the concessionaire for Yamuna Expressway Project, which inter-alia include construction of 165 kms long six lane access controlled expressway from Greater Noida to Agra with provision for expansion to eight lane with service roads andSite:JPINFRATEC
Market Cap:
Rs 483 cr
Price:
3.4
Trading pe:
x
Book-value:
-17.5/share
Div yield:
0.00 %
Earning yield:
-3.88%
Face-value:
10.0/share
52week high:
4.21
52week low:
1.13
Technical Analysis
Stock trades at 3.4, above its 50dma 2.4. It also trades above its 200dma 1.84. The stock remains bullish on techicals
The 52 week high is at 4.21 and the 52week low is at 1.13
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Debtor days have improved from 181.58 to 44.27 days.
Weakness
– has low interest coverage ratio.
-Contingent liabilities of Rs.1828.45 Cr.
-Promoters have pledged 83.63% of their holding.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 25.6x. IRB Infra.Devl. trades at the industry’s max P/E of 46.53x. JPINFRATEC trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. JPINFRATEC has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 21.0%. The max 1- month return was given by Jaypee Infratech: a return of 83.78 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 245.0 cr compared to Rs 383.0 cr for period ended Mar 2020, a fall of 36.0%
Company reported operating profit of Rs 85.0 cr for period ended Mar 2021, operating profit margin at 34.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs -3.54 compared to Rs -3.4 for previous quarter ended Dec 2020 and Rs -6.77 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 798.0 cr for period ended Mar 2021 vis-vis sales of Rs 1877.0 cr for the period ended Mar 2020, a fall of 135.2%. The 3 year sales cagr stood at 60.8%.
Operating margins expanded to 30.0% for period ended Mar 2021 vis-vis -11.0% for period ended Mar 2020, expansion of 4100.0 bps.
Net Profit reported at Rs -1963.0 cr for period ended Mar 2021 vis-vis sales of Rs -2250.0 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 119% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -52% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is -44% vis-vis a compounded profit growth of % 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 34.29% vis-vis 34.29% for Dec 2020
Conclusion
– has reduced debt.
-Debtor days have improved from 181.58 to 44.27 days. – has low interest coverage ratio.
-Contingent liabilities of Rs.1828.45 Cr.
-Promoters have pledged 83.63% of their holding.
-‘s cost of borrowing seems high
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 2.4 and is trading at 3.4 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
