Mehabe score: 0 G Factor: 1 Piotski Score: 3 The stock has a rating SELL. 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 1 and Piotski score of 3.
Description
Castex Technologies is engaged in the Business of Motor Vehicle Parts & accessory manufacturing service.Site:CASTEXTECHMain Symbol:CASTEXTECH
Stock trades at 0.45, below its 50dma 0.59 and below its 200dma 0.52. The stock remains bearish on technicals
The 52 week high is at 0.90 and the 52week low is at 0.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -39.81% over past five years.
-Contingent liabilities of Rs.460.16 Cr.
-Promoters have pledged 66.67% of their holding.
-Earnings include an other income of Rs.37.51 Cr.
– has high debtors of 187.55 days.
Competition
– The industry trades at a mean P/E of 32.8x. WABCO India trades at the industry’s max P/E of 131.33x. CASTEXTECH trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. CASTEXTECH has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is -2.6%. The max 1- month return was given by Minda Industries: a return of 12.07 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 103.0 cr compared to Rs 69.0 cr for period ended Mar 2020, a rise of 49.3%
Company reported negative operating profit of Rs -49.0 cr for period ended Mar 2021. For same period last year, operating profit was -7.0
The EPS for Mar 2021 was Rs -4.88 compared to Rs -3.34 for previous quarter ended Dec 2020 and Rs -3.28 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 290.0 cr for period ended Mar 2021 vis-vis sales of Rs 296.0 cr for the period ended Mar 2020, a fall of 2.1%. The 3 year sales cagr stood at -17.9%.
Operating margins shrank to -19.0% for period ended Mar 2021 vis-vis -15.0% for period ended Mar 2020, contraction of 400.0 bps.
Net Profit reported at Rs -536.0 cr for period ended Mar 2021 vis-vis sales of Rs -544.0 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 stock has given a return of -25% on a 1 Year basis vis-vis a return of -40% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of -41% over the last 3 Years. – The compounded profit growth on a TTM basis is 10% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.05% vis-vis 0.05% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 52.69% vis-vis 52.69% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -39.81% over past five years.
-Contingent liabilities of Rs.460.16 Cr.
-Promoters have pledged 66.67% of their holding.
-Earnings include an other income of Rs.37.51 Cr.
– has high debtors of 187.55 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 0.59 and is trading at 0.45. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
