Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6.
Description
Suryaamba Spinning Mills is engaged in the Business of Preparation and Spinning of Synthetic Yarn.Site:533101Main Symbol:SURYAAMBA
Stock trades at 112.0, above its 50dma 92.43. It also trades above its 200dma 70.68. The stock remains bullish on techicals
The 52 week high is at 118.00 and the 52week low is at 39.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.85 times its book value
Weakness
– The company has delivered a poor sales growth of -2.74% over past five years.
-Tax rate seems low
– has a low return on equity of 11.92% for last 3 years.
-Debtor days have increased from 38.58 to 50.27 days.
Competition
– The industry trades at a mean P/E of 12.4x. Sangam India trades at the industry’s max P/E of 104.68x. 533101 trades at a P/E of 7.71x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 8.0. 533101 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 17.6%. The max 1- month return was given by Suryalata Spg.: a return of 52.59 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 48.81 cr compared to Rs 36.24 cr for period ended Mar 2020, a rise of 34.7%
Operating Profits reported at Rs 5.02 cr for period ended Mar 2021 vis-vis 3.59 for period ended Mar 2020 .
Operating Margins expanded 37.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 10.64 compared to Rs 8.36 for previous quarter ended Dec 2020 and Rs 4.23 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 126.0 cr for period ended Mar 2021 vis-vis sales of Rs 162.0 cr for the period ended Mar 2020, a fall of 28.6%. The 3 year sales cagr stood at -6.3%.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020, falling 25.0%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 12.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 119% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -23% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -18% vis-vis a compounded profit growth of 22% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.72% vis-vis 25.72% for Dec 2020
Conclusion
– Stock is trading at 0.85 times its book value – The company has delivered a poor sales growth of -2.74% over past five years.
-Tax rate seems low
– has a low return on equity of 11.92% for last 3 years.
-Debtor days have increased from 38.58 to 50.27 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 92.43 and is trading at 112.0, thus bullish price action wise.
