Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 7.
Description
Snowman Logistics is engaged in the business of Temperature controlled logistics including, but not limited to storage, transportation by road, and distribution of products requiring a temperature controlled environment.
Main Points
Change in Business Model #
After being acquired by the Gateway Distriparks Ltd, the business model of the company was changed during the year 2016, the company discontinued its low margin food division business and focused on temperature controlled warehousing. They also changed the Distribution model from leasing vehicles to Owning their vehicles because of which the Margins has improved.Site:SNOWMANMain Symbol:SNOWMAN
Stock trades at 52.0, below its 50dma 53.0. However it is trading above its 200dma 49.67. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 53.0.
The 52 week high is at 71.25 and the 52week low is at 28.75
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.07% over past five years.
– has a low return on equity of -0.48% for last 3 years.
Competition
– The industry trades at a mean P/E of 34.8x. Mahindra Logis. trades at the industry’s max P/E of 79.01x. SNOWMAN trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. SNOWMAN has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Allcargo Logist.: a return of 19.61 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 66.06 cr compared to Rs 55.12 cr for period ended Jun 2020, a rise of 19.8%
Operating Profits reported at Rs 16.84 cr for period ended Jun 2021 vis-vis 16.77 for period ended Jun 2020 .
Operating Margins contracted -493.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.04 compared to Rs -0.03 for previous quarter ended Mar 2021 and Rs 0.05 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 248.0 cr for period ended TTM vis-vis sales of Rs 237.0 cr for the period ended Mar 2021, a growth of 4.4%. The 3 year sales cagr stood at 2.1%.
Operating margins shrank to 26.0% for period ended TTM vis-vis 27.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs -0.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021,
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 71.0 cr for period ended Mar 2021 vis-vis Rs 56.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 74% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 98% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.74% vis-vis 1.7% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 58.01% vis-vis 58.05% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.07% over past five years.
– has a low return on equity of -0.48% for last 3 years.
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 below its 50 DMA 53.0 and is trading at 52.0. Shows a near term lack of buying interest.
