Mehabe score: 5 G Factor: 4 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 4 and Piotski score of 5.
Description
Darshan Orna is engaged in the Business of Manufacrture and Wholesales of Jewellery.Site:539884
Market Cap:
Rs 31.9 cr
Price:
31.8
Trading pe:
17.3x
Book-value:
12.1/share
Div yield:
0.00 %
Earning yield:
-6.21%
Face-value:
10.0/share
52week high:
33.60
52week low:
8.16
Technical Analysis
Stock trades at 31.8, above its 50dma 21.24. It also trades above its 200dma 19.87. The stock remains bullish on techicals
The 52 week high is at 33.60 and the 52week low is at 8.16
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Debtor days have improved from 89.26 to 32.74 days.
Weakness
– Stock is trading at 2.64 times its book value
-The company has delivered a poor sales growth of -17.02% over past five years.
– has a low return on equity of 0.90% for last 3 years.
-Earnings include an other income of Rs.2.06 Cr.
Competition
– The industry trades at a mean P/E of 23.4x. Titan Company trades at the industry’s max P/E of 158.08x. 539884 trades at a P/E of 17.3x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 539884 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 11.0%. The max 1- month return was given by Darshan Orna: a return of 67.37 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.57 cr compared to Rs 14.62 cr for period ended Mar 2020, a fall of 61.9%
Company reported negative operating profit of Rs -0.13 cr for period ended Mar 2021. For same period last year, operating profit was -2.2
The EPS for Mar 2021 was Rs 1.74 compared to Rs 0.1 for previous quarter ended Dec 2020 and Rs -2.2 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.02 cr for period ended Mar 2021 vis-vis sales of Rs 18.14 cr for the period ended Mar 2020, a fall of 201.3%. The 3 year sales cagr stood at -46.7%.
Operating margins expanded to -0.33% for period ended Mar 2021 vis-vis -9.26% for period ended Mar 2020, expansion of 893.0 bps.
Net Profit reported at Rs 1.84 cr for period ended Mar 2021 vis-vis sales of Rs -1.68 cr for the period ended Mar 2020, rising 191.3%.
Company recorded a healthy Net Profit CAGR of 164.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -1.63 cr for period ended Mar 2020
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 17.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 28% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -67% vis-vis a compounded sales growth of -47% over the last 3 Years. – The compounded profit growth on a TTM basis is 210% vis-vis a compounded profit growth of 106% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 51.21% vis-vis 51.21% for Dec 2020
Conclusion
– is almost debt free.
-Debtor days have improved from 89.26 to 32.74 days. – Stock is trading at 2.64 times its book value
-The company has delivered a poor sales growth of -17.02% over past five years.
– has a low return on equity of 0.90% for last 3 years.
-Earnings include an other income of Rs.2.06 Cr.
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 21.24 and is trading at 31.8, thus bullish price action wise.
