Mehabe score: 4 G Factor: 3 Piotski Score: 4 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 4.
Description
Tantia Constructions is engaged in executing critical infrastructure projects. It began operations in the railways segment and over the years extended to seven core infrastructure segments of railways, roads, urban development, infrastructure and industriSite:TANTIACONSMain Symbol:TANTIACONS
Stock trades at 7.1, above its 50dma 6.77. It also trades above its 200dma 4.22. The stock remains bullish on techicals
The 52 week high is at 10.93 and the 52week low is at 0.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.08 times its book value
-Debtor days have improved from 261.91 to 128.97 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.92% over past five years.
– has a low return on equity of -98.56% for last 3 years.
-Contingent liabilities of Rs.614.03 Cr.
– might be capitalizing the interest cost
-Promoters have pledged 52.65% of their holding.
Competition
– The industry trades at a mean P/E of 22.6x. IRB Infra.Devl. trades at the industry’s max P/E of 47.1x. TANTIACONS trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. TANTIACONS has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by IRB Infra.Devl.: a return of 25.3 %
Quarterly Results
Sales for period ended Mar 2020 is Rs 54.0 cr compared to Rs 133.0 cr for period ended Mar 2019, a fall of 59.4%
Company reported negative operating profit of Rs -37.0 cr for period ended Mar 2020. For same period last year, operating profit was -128.0
The EPS for Mar 2020 was Rs 114.77 compared to Rs -4.66 for previous quarter ended Dec 2019 and Rs -49.82 for Mar 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 115.0 cr for period ended Mar 2020 vis-vis sales of Rs 218.0 cr for the period ended Mar 2019, a fall of 89.6%. The 3 year sales cagr stood at -21.2%.
Operating margins expanded to -51.0% for period ended Mar 2020 vis-vis -67.0% for period ended Mar 2019, expansion of 1600.0 bps.
Net Profit reported at Rs 308.0 cr for period ended Mar 2020 vis-vis sales of Rs -190.0 cr for the period ended Mar 2019, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2020 vis-vis Rs -37.0 cr for period ended Mar 2019
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 -29.0% compared to -99.0% over the last 3 Years. – The stock has given a return of 274% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -47% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is 86% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.96% vis-vis 25.96% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.08 times its book value
-Debtor days have improved from 261.91 to 128.97 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.92% over past five years.
– has a low return on equity of -98.56% for last 3 years.
-Contingent liabilities of Rs.614.03 Cr.
– might be capitalizing the interest cost
-Promoters have pledged 52.65% of their holding.
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 6.77 and is trading at 7.1 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
