Mehabe score: 3 G Factor: 4 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 4 and Piotski score of 4.
Description
Batliboi is engaged in the business of manufacture and trading of machine tool and textile engineering machines.Site:522004Main Symbol:BATLIBOI
Stock trades at 22.6, above its 50dma 21.85. It also trades above its 200dma 16.48. The stock remains bullish on techicals
The 52 week high is at 25.20 and the 52week low is at 7.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.50 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.83% over past five years.
– has a low return on equity of -2.04% for last 3 years.
-Contingent liabilities of Rs.57.87 Cr.
-Earnings include an other income of Rs.17.76 Cr.
Competition
– The industry trades at a mean P/E of 25.4x. GMM Pfaudler trades at the industry’s max P/E of 93.38x. 522004 trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 522004 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 4.2%. The max 1- month return was given by ISGEC Heavy: a return of 29.54 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 39.37 cr compared to Rs 46.12 cr for period ended Mar 2020, a fall of 14.6%
Company reported negative operating profit of Rs -1.94 cr for period ended Mar 2021. For same period last year, operating profit was -6.97
The EPS for Mar 2021 was Rs 3.21 compared to Rs 0.27 for previous quarter ended Dec 2020 and Rs -2.88 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 152.0 cr for period ended Mar 2021 vis-vis sales of Rs 195.0 cr for the period ended Mar 2020, a fall of 28.3%. The 3 year sales cagr stood at -10.4%.
Operating margins expanded to 2.0% for period ended Mar 2021 vis-vis -3.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs -16.0 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 145% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is 68% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.09% vis-vis 25.09% for Dec 2020
Conclusion
– Stock is trading at 0.50 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.83% over past five years.
– has a low return on equity of -2.04% for last 3 years.
-Contingent liabilities of Rs.57.87 Cr.
-Earnings include an other income of Rs.17.76 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 21.85 and is trading at 22.6 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
