Mehabe score: 5 G Factor: 0 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 0 and Piotski score of 7.
Description
Naturite Agro Products is having the business of Agro Products.(Source : 201903 Annual Report Page No:49)Site:538926
Market Cap:
Rs 62.0 cr
Price:
117.0
Trading pe:
53.0x
Book-value:
26.4/share
Div yield:
0.00 %
Earning yield:
1.96%
Face-value:
10.0/share
52week high:
152.00
52week low:
117.00
Technical Analysis
Stock trades at 117.0, above its 50dma 112.27. It also trades above its 200dma 62.07. The stock remains bullish on techicals
The 52 week high is at 152.00 and the 52week low is at 117.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 196.47 to 144.60 days.
Weakness
– Stock is trading at 4.43 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 0.81% for last 3 years.
Competition
– The industry trades at a mean P/E of 38.0x. Hindustan Foods trades at the industry’s max P/E of 117.6x. 538926 trades at a P/E of 53.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 538926 has a G-Factor of 0 and Piotski scoreof 7.
– Average 1 month return for industry is -1.4%. The max 1- month return was given by KRBL: a return of 11.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.62 cr compared to Rs 3.61 cr for period ended Mar 2020, a fall of 27.4%
Company reported negative operating profit of Rs -1.14 cr for period ended Mar 2021. For same period last year, operating profit was -0.59
The EPS for Mar 2021 was Rs -1.34 compared to Rs -0.3 for previous quarter ended Dec 2020 and Rs -1.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 12.69 cr for period ended Mar 2021 vis-vis sales of Rs 11.99 cr for the period ended Mar 2020, a growth of 5.5%. The 3 year sales cagr stood at 70.7%.
Operating margins expanded to 6.23% for period ended Mar 2021 vis-vis 1.25% for period ended Mar 2020, expansion of 498.0 bps.
Net Profit reported at Rs 0.63 cr for period ended Mar 2021 vis-vis sales of Rs 0.05 cr for the period ended Mar 2020, rising 92.1%.
Company recorded a healthy Net Profit CAGR of 51.8% 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 stock has given a return of -19% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 30% vis-vis a compounded sales growth of 36% over the last 3 Years. – The compounded profit growth on a TTM basis is 50% vis-vis a compounded profit growth of -36% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.95% vis-vis 30.95% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 196.47 to 144.60 days. – Stock is trading at 4.43 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 0.81% for 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 112.27 and is trading at 117.0 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
