Mehabe score: 4 G Factor: 5 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 5 and Piotski score of 4.
Description
Orosil Smiths India is operating in Gems and Jewellery sector.Site:531626Main Symbol:OROSMITHS
Stock trades at 3.42, above its 50dma 3.33. However it is trading below its 200dma 3.73. The stock remains weak though short term bullish momentum supports price action. It needs to close above 3.73 for bullish price action to continue
The 52 week high is at 3.80 and the 52week low is at 2.63
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 5.50 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -30.97% over past five years.
– has a low return on equity of -11.23% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.5x. Titan Company trades at the industry’s max P/E of 157.13x. 531626 trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 531626 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Goldiam Intl.: a return of 28.73 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.13 cr compared to Rs 0.03 cr for period ended Jun 2020, a rise of 333.3%
The EPS for Jun 2021 was Rs -0.01 compared to Rs -0.05 for previous quarter ended Mar 2021 and Rs -0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.59 cr for period ended TTM vis-vis sales of Rs 0.5 cr for the period ended Mar 2021, a healthy growth of 15.3%. The 3 year sales cagr stood at -28.1%.
Operating margins expanded to -32.2% for period ended TTM vis-vis -46.0% for period ended Mar 2021, expansion of 1380.0 bps.
Net Profit reported at Rs -0.37 cr for period ended TTM vis-vis sales of Rs -0.4 cr for the period ended Mar 2021, rising 0%.
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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -15.0% compared to -11.0% over the last 3 Years. – The stock has given a return of 2% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -70% vis-vis a compounded sales growth of -49% over the last 3 Years. – The compounded profit growth on a TTM basis is -54% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.02% vis-vis 25.02% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 5.50 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -30.97% over past five years.
– has a low return on equity of -11.23% for last 3 years.
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 3.33 and is trading at 3.42 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
