Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 6.
Description
Shree Worstex is engaged in interestearned , Consultancy income.Site:541358Main Symbol:SHWL
Stock trades at 321.0, above its 50dma 155.17. It also trades above its 200dma 69.94. The stock remains bullish on techicals
The 52 week high is at 320.85 and the 52week low is at 15.71
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 17.58 times its book value
– has a low return on equity of 3.07% for last 3 years.
-Earnings include an other income of Rs.2.37 Cr.
Competition
– The industry trades at a mean P/E of 26.4x. SBI Cards trades at the industry’s max P/E of 90.12x. 541358 trades at a P/E of 53.9x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 6.0. 541358 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 1.5%. The max 1- month return was given by Bajaj Holdings: a return of 9.06 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.12 cr compared to Rs 0.08 cr for period ended Jun 2020, a rise of 50.0%
Operating Profits reported at Rs 0.08 cr for period ended Jun 2021 vis-vis 0.12 for period ended Jun 2020 .
Operating Margins contracted -8333.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 4.68 compared to Rs 0.45 for previous quarter ended Mar 2021 and Rs 0.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.51 cr for period ended TTM vis-vis sales of Rs 0.47 cr for the period ended Mar 2021, a growth of 7.8%. The 3 year sales cagr stood at -25.6%.
Operating margins shrank to -41.18% for period ended TTM vis-vis -38.3% for period ended Mar 2021, contraction of 288.0 bps.
Net Profit reported at Rs 1.87 cr for period ended TTM vis-vis sales of Rs 0.49 cr for the period ended Mar 2021, 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 3.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -64% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is 1000% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.14% vis-vis 28.14% for Dec 2020
Conclusion
– is almost debt free. – Stock is trading at 17.58 times its book value
– has a low return on equity of 3.07% for last 3 years.
-Earnings include an other income of Rs.2.37 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 155.17 and is trading at 321.0 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
