Mehabe score: 5 G Factor: 5 Piotski Score: 7 The stock has a rating 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 7.
Description
Karda Construction is engaged primarily in the business of real estate construction, development, civil contracts (EPC) and other related activities.(Source : 201903 Annual Report Page No: 91)Site:KARDAMain Symbol:KARDA
Stock trades at 183.0, above its 50dma 167.2. It also trades above its 200dma 129.5. The stock remains bullish on techicals
The 52 week high is at 194.35 and the 52week low is at 62.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 9.14 times its book value
-Promoter holding has decreased over last quarter: -4.48%
– has a low return on equity of 13.88% for last 3 years.
-Debtor days have increased from 56.04 to 90.22 days.
Competition
– The industry trades at a mean P/E of 41.1x. Phoenix Mills trades at the industry’s max P/E of 286.27x. KARDA trades at a P/E of 55.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. KARDA has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 10.4%. The max 1- month return was given by Brigade Enterpr.: a return of 21.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 45.0 cr compared to Rs 28.0 cr for period ended Mar 2020, a rise of 60.7%
Operating Profits reported at Rs 20.0 cr for period ended Mar 2021 vis-vis 6.0 for period ended Mar 2020 .
Operating Margins expanded 2301.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.06 compared to Rs 0.61 for previous quarter ended Dec 2020 and Rs 0.3 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 121.0 cr for period ended Mar 2021 vis-vis sales of Rs 114.0 cr for the period ended Mar 2020, a growth of 5.8%. The 3 year sales cagr stood at -1.6%.
Operating margins expanded to 29.0% for period ended Mar 2021 vis-vis 23.0% for period ended Mar 2020, expansion of 600.0 bps.
Net Profit reported at Rs 20.0 cr for period ended Mar 2021 vis-vis sales of Rs 10.0 cr for the period ended Mar 2020, rising 50.0%.
Company recorded a healthy Net Profit CAGR of 15.4% over the last 3 years
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 174% on a 1 Year basis vis-vis a return of 78% over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Jun 2021. The Jun 2021 fii holding stood at 6.18% vis-vis 3.7% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 33.46% vis-vis 31.39% for Mar 2021
Conclusion
– – Stock is trading at 9.14 times its book value
-Promoter holding has decreased over last quarter: -4.48%
– has a low return on equity of 13.88% for last 3 years.
-Debtor days have increased from 56.04 to 90.22 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 167.2 and is trading at 183.0, thus bullish price action wise.
