Mehabe score: 5 G Factor: 3 Piotski Score: 6 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 6.
Description
TCI Developers is engaged in the Business of Rental or leasing services of land, buildings and warehouses and Project management services for construction projects.Site:TCIDEVELOPMain Symbol:TCIDEVELOP
Stock trades at 385.0, above its 50dma 374.1. It also trades above its 200dma 333.14. The stock remains bullish on techicals
The 52 week high is at 549.00 and the 52week low is at 255.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -4.69%
-The company has delivered a poor sales growth of 2.65% over past five years.
– has a low return on equity of 4.19% for last 3 years.
Competition
– The industry trades at a mean P/E of 35.2x. Phoenix Mills trades at the industry’s max P/E of 273.78x. TCIDEVELOP trades at a P/E of 78.5x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. TCIDEVELOP has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is -0.7%. The max 1- month return was given by NBCC: a return of 10.96 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.91 cr compared to Rs 2.42 cr for period ended Mar 2020, a rise of 20.2%
Operating Profits reported at Rs 1.14 cr for period ended Mar 2021 vis-vis 0.88 for period ended Mar 2020 .
Operating Margins expanded 281.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.56 compared to Rs 1.88 for previous quarter ended Dec 2020 and Rs 0.88 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 10.54 cr for period ended Mar 2021 vis-vis sales of Rs 9.97 cr for the period ended Mar 2020, a growth of 5.4%. The 3 year sales cagr stood at -0.5%.
Operating margins expanded to 46.58% for period ended Mar 2021 vis-vis 43.33% for period ended Mar 2020, expansion of 325.0 bps.
Net Profit reported at Rs 1.83 cr for period ended Mar 2021 vis-vis sales of Rs 1.85 cr for the period ended Mar 2020, falling 1.1%.
Company reported a poor Net Profit CAGR of -14.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.62 cr for period ended Mar 2021 vis-vis Rs -0.09 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 40% 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 6% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of -5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 29.87% vis-vis 25.18% for Dec 2020
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -4.69%
-The company has delivered a poor sales growth of 2.65% over past five years.
– has a low return on equity of 4.19% 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 374.1 and is trading at 385.0 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
