Mehabe score: 6 G Factor: 3 Piotski Score: 8 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 3 and Piotski score of 8.
Description
Shri Keshav Cements and Infra is engaged in the business of manufacturing and trading in cements, trading in coal, trading in petroleum products and in the business of generation and distribution of solar energy.Site:530977
Market Cap:
Rs 45.0 cr
Price:
37.5
Trading pe:
x
Book-value:
13.4/share
Div yield:
0.00 %
Earning yield:
4.81%
Face-value:
10.0/share
52week high:
42.50
52week low:
24.70
Technical Analysis
Stock trades at 37.5, above its 50dma 37.17. It also trades above its 200dma 34.97. The stock remains bullish on techicals
The 52 week high is at 42.50 and the 52week low is at 24.70
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 2.81 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.94% over past five years.
– has a low return on equity of -69.26% for last 3 years.
Competition
– The industry trades at a mean P/E of 15.8x. The Ramco Cement trades at the industry’s max P/E of 30.39x. 530977 trades at a P/E of x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 8.0. 530977 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 10.6%. The max 1- month return was given by K C P: a return of 35.39 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 25.67 cr compared to Rs 17.21 cr for period ended Mar 2020, a rise of 49.2%
Operating Profits reported at Rs 9.13 cr for period ended Mar 2021 vis-vis 7.33 for period ended Mar 2020 .
Operating Margins contracted -702.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.63 compared to Rs -2.2 for previous quarter ended Dec 2020 and Rs -3.87 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 80.44 cr for period ended TTM vis-vis sales of Rs 68.01 cr for the period ended Mar 2020, a healthy growth of 15.5%. The 3 year sales cagr stood at 15.6%.
Operating margins shrank to 32.62% for period ended TTM vis-vis 39.08% for period ended Mar 2020, contraction of 646.0 bps.
Net Profit reported at Rs -8.44 cr for period ended TTM vis-vis sales of Rs -7.64 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 22.22 cr for period ended Mar 2020 vis-vis Rs 8.29 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 5% on a 1 Year basis vis-vis a return of -27% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -24760% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.97% vis-vis 26.97% for Dec 2020
Conclusion
– – Stock is trading at 2.81 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.94% over past five years.
– has a low return on equity of -69.26% 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 37.17 and is trading at 37.5 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
