Mehabe score: 3 G Factor: 3 Piotski Score: 3 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 3.
Description
Roxy Exports Ltd is engaged in manufacturer, supplier and exporter of bicycles and bicycle parts.Site:539561Main Symbol:REMLIFE
Stock trades at 103.0, above its 50dma 88.26. It also trades above its 200dma 57.89. The stock remains bullish on techicals
The 52 week high is at 107.90 and the 52week low is at 16.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 201.61 to 96.00 days.
Weakness
– Stock is trading at 9.58 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -8.61%
-Promoter holding is low: 34.96%
– has a low return on equity of 7.78% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 49.7x. 3M India trades at the industry’s max P/E of 183.61x. 539561 trades at a P/E of 77.1x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 539561 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Redington India: a return of 22.24 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 138.13 cr compared to Rs 0.22 cr for period ended Jun 2020, a rise of 62686.4%
Operating Profits reported at Rs 0.47 cr for period ended Jun 2021 vis-vis 0.03 for period ended Jun 2020 .
Operating Margins contracted -1329.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.25 compared to Rs 0.81 for previous quarter ended Mar 2021 and Rs 0.06 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 228.0 cr for period ended TTM vis-vis sales of Rs 90.0 cr for the period ended Mar 2021, a healthy growth of 60.5%.
Net Profit reported at Rs 1.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 414% on a 1 Year basis vis-vis a return of 101% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3015% vis-vis a compounded sales growth of 536% over the last 3 Years. – The compounded profit growth on a TTM basis is 71% vis-vis a compounded profit growth of 263% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 65.04% vis-vis 56.43% for Dec 2020
Conclusion
– is expected to give good quarter
-Debtor days have improved from 201.61 to 96.00 days. – Stock is trading at 9.58 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -8.61%
-Promoter holding is low: 34.96%
– has a low return on equity of 7.78% for last 3 years.
– might be capitalizing the interest cost
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 88.26 and is trading at 103.0 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
