Mehabe score: 2 G Factor: 2 Piotski Score: 5 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 2 and Piotski score of 5.
Description
Alliance Integrated Metaliks engaged in setting up power project by manufacturing and supplying heavy Steel structures and equipments related to power plants , Civil sectors.Site:534064Main Symbol:AIML
Stock trades at 19.4, above its 50dma 15.42. However it is trading below its 200dma 43.56. The stock remains weak though short term bullish momentum supports price action. It needs to close above 43.56 for bullish price action to continue
The 52 week high is at 19.40 and the 52week low is at 7.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -36.89% over past five years.
-Contingent liabilities of Rs.21.62 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 15.2x. Apollo Tricoat trades at the industry’s max P/E of 40.95x. 534064 trades at a P/E of x
– Industry’s mean G-Factor is 5.8 while the mean Piotski score is 8.0. 534064 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -2.0%. The max 1- month return was given by Welspun Corp: a return of 4.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 36.0 cr compared to Rs 10.0 cr for period ended Mar 2020, a rise of 260.0%
Company reported operating profit of Rs 4.0 cr for period ended Mar 2021, operating profit margin at 11.1 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs -14.79 compared to Rs -23.86 for previous quarter ended Dec 2020 and Rs -30.22 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 73.0 cr for period ended Mar 2021 vis-vis sales of Rs 52.0 cr for the period ended Mar 2020, a healthy growth of 28.8%. The 3 year sales cagr stood at -4.2%.
Operating margins shrank to 1.0% for period ended Mar 2021 vis-vis 16.0% for period ended Mar 2020, contraction of 1500.0 bps.
Net Profit reported at Rs -99.0 cr for period ended Mar 2021 vis-vis sales of Rs -115.0 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 161% on a 1 Year basis vis-vis a return of -49% over the last 3 Years. – The compounded sales growth on a TTM bassis is -37% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is -77% vis-vis a compounded profit growth of -41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.65% vis-vis 28.65% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -36.89% over past five years.
-Contingent liabilities of Rs.21.62 Cr.
-‘s cost of borrowing seems high
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 15.42 and is trading at 19.4 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
