Mehabe score: 2 G Factor: 2 Piotski Score: 7 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 7.
Description
AMD Industries is an India-based company, which is engaged in the manufacturing of Pet Preforms, Crown corks, Carbonated Soft Drink (CSD) Closures and Other Business Support Services.Site:AMDIND
Market Cap:
Rs 45.8 cr
Price:
23.9
Trading pe:
x
Book-value:
65.4/share
Div yield:
0.00 %
Earning yield:
-8.34%
Face-value:
10.0/share
52week high:
27.95
52week low:
13.05
Technical Analysis
Stock trades at 23.9, above its 50dma 20.92. It also trades above its 200dma 18.92. The stock remains bullish on techicals
The 52 week high is at 27.95 and the 52week low is at 13.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.37 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.42% over past five years.
– has a low return on equity of 0.44% for last 3 years.
-Earnings include an other income of Rs.11.09 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 13.3x. EPL Ltd trades at the industry’s max P/E of 36.07x. AMDIND trades at a P/E of x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 9.0. AMDIND has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 10.5%. The max 1- month return was given by AMD Industries: a return of 22.56 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 52.58 cr compared to Rs 52.13 cr for period ended Mar 2020, a rise of 0.9%
Company reported operating profit of Rs 8.49 cr for period ended Mar 2021, operating profit margin at 16.1 %.
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 2.66 compared to Rs 0.66 for previous quarter ended Dec 2020 and Rs 0.33 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 119.0 cr for period ended Mar 2021 vis-vis sales of Rs 175.0 cr for the period ended Mar 2020, a fall of 47.1%. The 3 year sales cagr stood at -6.4%.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 58% on a 1 Year basis vis-vis a return of -0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -30% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is -239% vis-vis a compounded profit growth of -11% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 33.36% vis-vis 33.36% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.37 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.42% over past five years.
– has a low return on equity of 0.44% for last 3 years.
-Earnings include an other income of Rs.11.09 Cr.
-‘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 20.92 and is trading at 23.9 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
