Mehabe score: 3 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
Rohit Ferro Tech is engaged in a well-differentiated player in the Ferro Alloy manufacturing sector.Site:ROHITFERROMain Symbol:ROHITFERRO
Stock trades at 3.3, above its 50dma 2.28. It also trades above its 200dma 1.63. The stock remains bullish on techicals
The 52 week high is at 4.12 and the 52week low is at 0.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.67% over past five years.
-Promoters have pledged 100.00% of their holding.
Competition
– The industry trades at a mean P/E of 18.8x. KIOCL trades at the industry’s max P/E of 52.72x. ROHITFERRO trades at a P/E of x
– Industry’s mean G-Factor is 5.6 while the mean Piotski score is 9.0. ROHITFERRO has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is -0.7%. The max 1- month return was given by Rohit Ferro Tech: a return of 10.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 235.61 cr compared to Rs 148.62 cr for period ended Mar 2020, a rise of 58.5%
Company reported negative operating profit of Rs -1.45 cr for period ended Mar 2021. For same period last year, operating profit was -54.15
The EPS for Mar 2021 was Rs -0.61 compared to Rs -1.94 for previous quarter ended Dec 2020 and Rs -54.18 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 634.0 cr for period ended Mar 2021 vis-vis sales of Rs 738.0 cr for the period ended Mar 2020, a fall of 16.4%. The 3 year sales cagr stood at -3.8%.
Operating margins expanded to -7.0% for period ended Mar 2021 vis-vis -12.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs -69.0 cr for period ended Mar 2021 vis-vis sales of Rs -679.0 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 187% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 53% vis-vis a compounded profit growth of 22% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 28.0% vis-vis 28.0% for Mar 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.67% over past five years.
-Promoters have pledged 100.00% of their holding.
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 2.28 and is trading at 3.3, thus bullish price action wise.
