Mehabe score: 4 G Factor: 6 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 6 and Piotski score of 7.
Description
GPT Infraprojects is principally engaged in construction activities for infrastructure projects. Besides, the Company is also engaged in concrete sleeper manufacturing business.(Source : 201903 Annual Report Page No: 85)Site:GPTINFRAMain Symbol:GPTINFRA
Stock trades at 94.2, above its 50dma 72.23. It also trades above its 200dma 49.88. The stock remains bullish on techicals
The 52 week high is at 107.85 and the 52week low is at 24.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.14 times its book value
– has been maintaining a healthy dividend payout of 38.15%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.92% over past five years.
– has a low return on equity of 7.08% for last 3 years.
-Promoters have pledged 68.00% of their holding.
Competition
– The industry trades at a mean P/E of 40.9x. Macrotech Devel. trades at the industry’s max P/E of 19.47x. GPTINFRA trades at a P/E of 13.6x
– Industry’s mean G-Factor is 5.8 while the mean Piotski score is 7.0. GPTINFRA has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 17.8%. The max 1- month return was given by H.G. Infra Engg.: a return of 33.03 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 212.26 cr compared to Rs 187.26 cr for period ended Mar 2020, a rise of 13.4%
Operating Profits reported at Rs 24.07 cr for period ended Mar 2021 vis-vis 15.74 for period ended Mar 2020 .
Operating Margins expanded 293.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.88 compared to Rs 1.7 for previous quarter ended Dec 2020 and Rs 0.33 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 609.0 cr for period ended Mar 2021 vis-vis sales of Rs 618.0 cr for the period ended Mar 2020, a fall of 1.5%. The 3 year sales cagr stood at 5.4%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 20.0 cr for period ended Mar 2021 vis-vis sales of Rs 15.0 cr for the period ended Mar 2020, rising 25.0%.
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 261% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 34% vis-vis a compounded profit growth of 0% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 22.02% vis-vis 22.0% for Mar 2021
Conclusion
– Stock is trading at 1.14 times its book value
– has been maintaining a healthy dividend payout of 38.15% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.92% over past five years.
– has a low return on equity of 7.08% for last 3 years.
-Promoters have pledged 68.00% 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 72.23 and is trading at 94.2, thus bullish price action wise.
