Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 7.
Description
Saint-Gobain Sekurit India Ltd, incorporated on 13th Nov 1973, is the Indian subsidiary of Saint-Gobain Sekurit France which has its presence in 22 countries, with a 40% market share in the European market, 21 % worldwide, and a rapidly growing presence in Asia.
Saint-Gobain Sekurit supplies automotive glazing and modular components for the global vehicle manufacturing segment and the replacement market. # #Site:515043Main Symbol:SAINTGOBAIN
Stock trades at 73.4, above its 50dma 69.56. It also trades above its 200dma 64.63. The stock remains bullish on techicals
The 52 week high is at 81.00 and the 52week low is at 45.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 4.73 times its book value
-The company has delivered a poor sales growth of -5.71% over past five years.
– has a low return on equity of 8.83% for last 3 years.
-Debtor days have increased from 63.49 to 92.46 days.
Competition
– The industry trades at a mean P/E of 42.1x. Asahi India Glas trades at the industry’s max P/E of 65.69x. 515043 trades at a P/E of 58.5x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. 515043 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 8.4%. The max 1- month return was given by Hind.Natl.Glass: a return of 38.01 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 37.93 cr compared to Rs 26.03 cr for period ended Mar 2020, a rise of 45.7%
Operating Profits reported at Rs 9.25 cr for period ended Mar 2021 vis-vis 3.63 for period ended Mar 2020 .
Operating Margins expanded 1044.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.68 compared to Rs 0.61 for previous quarter ended Dec 2020 and Rs 0.27 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 105.0 cr for period ended Mar 2021 vis-vis sales of Rs 135.0 cr for the period ended Mar 2020, a fall of 28.6%. The 3 year sales cagr stood at -10.4%.
Operating margins expanded to 15.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 11.0 cr for period ended Mar 2021 vis-vis sales of Rs 13.0 cr for the period ended Mar 2020, falling 18.2%.
Company reported a poor Net Profit CAGR of -7.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 8.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 45% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 17% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.01% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.98% vis-vis 25.0% for Dec 2020
Conclusion
– is almost debt free. – Stock is trading at 4.73 times its book value
-The company has delivered a poor sales growth of -5.71% over past five years.
– has a low return on equity of 8.83% for last 3 years.
-Debtor days have increased from 63.49 to 92.46 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 69.56 and is trading at 73.4 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
