Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5.
Description
Disa India is a leading equipment manufacturer with advanced foundry and surface preparation process technology.Site:500068Main Symbol:DISAQ
Stock trades at 5328.0, above its 50dma 4981.13. It also trades above its 200dma 4463.58. The stock remains bullish on techicals
The 52 week high is at 5855.00 and the 52week low is at 3302.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 5.33% over past five years.
-Earnings include an other income of Rs.9.38 Cr.
Competition
– The industry trades at a mean P/E of 24.1x. GMM Pfaudler trades at the industry’s max P/E of 90.58x. 500068 trades at a P/E of 32.2x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 500068 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by ISGEC Heavy: a return of 27.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 31.93 cr compared to Rs 19.03 cr for period ended Mar 2020, a rise of 67.8%
Company reported negative operating profit of Rs -0.96 cr for period ended Mar 2021. For same period last year, operating profit was -3.38
The EPS for Mar 2021 was Rs 2.41 compared to Rs 114.7 for previous quarter ended Dec 2020 and Rs -11.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 185.0 cr for period ended Mar 2021 vis-vis sales of Rs 233.0 cr for the period ended Mar 2020, a fall of 25.9%. The 3 year sales cagr stood at -3.4%.
Operating margins shrank to 15.0% for period ended Mar 2021 vis-vis 16.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 24.0 cr for period ended Mar 2021 vis-vis sales of Rs 30.0 cr for the period ended Mar 2020, falling 25.0%.
Company recorded a healthy Net Profit CAGR of 12.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 68.0 cr for period ended Mar 2021 vis-vis Rs 9.0 cr for period ended Mar 2020
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 14.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 52% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.14% vis-vis 0.14% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 16.03% vis-vis 15.97% for Mar 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 5.33% over past five years.
-Earnings include an other income of Rs.9.38 Cr.
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 4981.13 and is trading at 5328.0, thus bullish price action wise.
