Mehabe score: 2 G Factor: 4 Piotski Score: 1 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 4 and Piotski score of 1.
Description
Mahindra Lifespace Developers is engaged in the development of residential projects and large formats developments such as integrated cities and industrial clusters.(Source : 202003-01 Annual Report Page No:86)Site:MAHLIFEMain Symbol:MAHLIFE
Stock trades at 596.0, above its 50dma 558.55. It also trades above its 200dma 451.12. The stock remains bullish on techicals
The 52 week high is at 666.00 and the 52week low is at 194.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -22.46% over past five years.
– has a low return on equity of -0.27% for last 3 years.
-Debtor days have increased from 92.23 to 123.85 days.
Competition
– The industry trades at a mean P/E of 37.8x. Macrotech Devel. trades at the industry’s max P/E of 19.93x. MAHLIFE trades at a P/E of x
– Industry’s mean G-Factor is 5.3 while the mean Piotski score is 7.0. MAHLIFE has a G-Factor of 4 and Piotski scoreof 1.
– Average 1 month return for industry is 15.2%. The max 1- month return was given by JP Associates: a return of 55.17 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 56.0 cr compared to Rs 101.0 cr for period ended Mar 2020, a fall of 44.6%
Company reported negative operating profit of Rs -37.0 cr for period ended Mar 2021. For same period last year, operating profit was -101.0
The EPS for Mar 2021 was Rs -5.3 compared to Rs -2.18 for previous quarter ended Dec 2020 and Rs -43.59 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 166.0 cr for period ended Mar 2021 vis-vis sales of Rs 611.0 cr for the period ended Mar 2020, a fall of 268.1%. The 3 year sales cagr stood at -33.6%.
Operating margins shrank to -56.0% for period ended Mar 2021 vis-vis -13.0% for period ended Mar 2020, contraction of 4300.0 bps.
Net Profit reported at Rs -72.0 cr for period ended Mar 2021 vis-vis sales of Rs -193.0 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 -4.0% compared to -0.0% over the last 3 Years. – The stock has given a return of 179% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -73% vis-vis a compounded sales growth of -34% over the last 3 Years. – The compounded profit growth on a TTM basis is -14% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 13.5% vis-vis 12.41% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 20.84% vis-vis 21.65% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -22.46% over past five years.
– has a low return on equity of -0.27% for last 3 years.
-Debtor days have increased from 92.23 to 123.85 days.
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 558.55 and is trading at 596.0 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
