Mehabe score: 2 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
Balu is now an avant-garde manufacturer of fully finished and semi-finished forged crankshafts and Forged Components. Our incremental innovation & continuous strive to improve has awarded us by making us the only company to have the capability to manufacture components conforming to the New Emission Regulations & the New Energy VehiclesSite:531112
Market Cap:
Rs 1,691 cr
Price:
228.0
Trading pe:
2684.0x
Book-value:
2.99/share
Div yield:
0.00 %
Earning yield:
0.09%
Face-value:
10.0/share
52week high:
254.60
52week low:
38.75
Technical Analysis
Stock trades at 228.0, above its 50dma 224.08. It also trades above its 200dma 165.8. The stock remains bullish on techicals
The 52 week high is at 254.60 and the 52week low is at 38.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 50.82%
-Debtor days have improved from 173.38 to 73.00 days.
Weakness
– Stock is trading at 76.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -5.23%
Competition
– The industry trades at a mean P/E of 22.2x. Balu Forge trades at the industry’s max P/E of 2684.06x. 531112 trades at a P/E of 2684.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 531112 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by ISGEC Heavy: a return of 38.03 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 43.37 cr compared to Rs 0.08 cr for period ended Mar 2020, a rise of 54112.5%
Operating Profits reported at Rs 3.37 cr for period ended Mar 2021 vis-vis 0.03 for period ended Mar 2020 .
Operating Margins contracted -2973.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.7 compared to Rs 0.22 for previous quarter ended Dec 2020 and Rs 0.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 142.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 cr for the period ended Mar 2020, a growth of 0%.
Operating margins shrank to 9.0% for period ended Mar 2021 vis-vis 30.0% for period ended Mar 2020, contraction of 2100.0 bps.
Net Profit reported at Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 51.0% over the last 3 Years. – The stock has given a return of 487% on a 1 Year basis vis-vis a return of 55% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25124% vis-vis a compounded sales growth of 19% over the last 3 Years. – The compounded profit growth on a TTM basis is 232% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 10.93% vis-vis 10.93% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 19.22% vis-vis 19.22% for Dec 2020
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 50.82%
-Debtor days have improved from 173.38 to 73.00 days. – Stock is trading at 76.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -5.23%
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 224.08 and is trading at 228.0, thus bullish price action wise.
