Mehabe score: 6 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
S.M. Gold is engaged in the Wholesale of Gold and Silver Ornaments.Site:542034Main Symbol:SMGOLD
Stock trades at 98.5, above its 50dma 68.4. It also trades above its 200dma 38.78. The stock remains bullish on techicals
The 52 week high is at 96.60 and the 52week low is at 18.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 7.69 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.20% for last 3 years.
-Earnings include an other income of Rs.0.45 Cr.
Competition
– The industry trades at a mean P/E of 25.1x. S.M. Gold trades at the industry’s max P/E of 162.08x. 542034 trades at a P/E of 162.0x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 542034 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by S.M. Gold: a return of 33.11 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 6.23 cr compared to Rs 4.88 cr for period ended Jun 2018, a rise of 27.7%
Operating Profits reported at Rs 0.17 cr for period ended Jun 2021 vis-vis 0.28 for period ended Jun 2018 .
Operating Margins contracted -300.9 bps for period ended Jun 2021 vis-vis Jun 2018 .
The EPS for Jun 2021 was Rs 0.1 compared to Rs -0.33 for previous quarter ended Mar 2021 and Rs 0.35 for Jun 2018
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 33.4 cr for period ended Mar 2021 vis-vis sales of Rs 28.58 cr for the period ended Mar 2020, a healthy growth of 14.4%. The 3 year sales cagr stood at 35.3%.
Operating margins expanded to 2.1% for period ended Mar 2021 vis-vis -0.35% for period ended Mar 2020, expansion of 245.0 bps.
Net Profit reported at Rs 0.61 cr for period ended Mar 2021 vis-vis sales of Rs 0.14 cr for the period ended Mar 2020, rising 77.0%.
Company recorded a healthy Net Profit CAGR of 50.2% over the last 3 years
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 305% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 35% over the last 3 Years. – The compounded profit growth on a TTM basis is 369% vis-vis a compounded profit growth of 50% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 37.36% vis-vis 37.36% for Mar 2021
Conclusion
– – Stock is trading at 7.69 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.20% for last 3 years.
-Earnings include an other income of Rs.0.45 Cr.
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 68.4 and is trading at 98.5 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
