Mehabe score: 5 G Factor: 2 Piotski Score: 4 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 4.
Description
SKIL Infrastructure is Infrastructure Company developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors.Site:SKILMain Symbol:SKIL
Stock trades at 3.8, above its 50dma 3.6. It also trades above its 200dma 3.39. The stock remains bullish on techicals
The 52 week high is at 5.98 and the 52week low is at 2.03
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.77% over past five years.
-Promoters have pledged 72.39% of their holding.
-Promoter holding has decreased over last 3 years: -7.33%
Competition
– The industry trades at a mean P/E of 39.6x. Macrotech Devel. trades at the industry’s max P/E of 20.31x. SKIL trades at a P/E of x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 7.0. SKIL has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 8.8%. The max 1- month return was given by H.G. Infra Engg.: a return of 24.25 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 30.0 cr compared to Rs 32.0 cr for period ended Mar 2020, a fall of 6.2%
Company reported negative operating profit of Rs -392.0 cr for period ended Mar 2021. For same period last year, operating profit was -1788.0
The EPS for Mar 2021 was Rs -21.21 compared to Rs -0.6 for previous quarter ended Dec 2020 and Rs -83.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 30.0 cr for period ended Mar 2021 vis-vis sales of Rs 32.0 cr for the period ended Mar 2020, a fall of 6.7%. The 3 year sales cagr stood at 10.9%.
Operating margins expanded to -1320.0% for period ended Mar 2021 vis-vis -5569.0% for period ended Mar 2020, expansion of 424900.0 bps.
Net Profit reported at Rs -507.0 cr for period ended Mar 2021 vis-vis sales of Rs -1978.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -372.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -13% on a 1 Year basis vis-vis a return of -44% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 72% vis-vis a compounded profit growth of -62% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 6.82% vis-vis 6.82% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.72% vis-vis 31.98% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.77% over past five years.
-Promoters have pledged 72.39% of their holding.
-Promoter holding has decreased over last 3 years: -7.33%
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 3.6 and is trading at 3.8 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
