Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 5.
Description
Richirich Inventures is engaged in the business of investment in stock/ shares, advances and loans and is earning profits.The company is now diversifying to manufacture Agro based edible oil and Solvent Extraction of Rapeseed/Mustard.Site:519230Main Symbol:RICHIRICH
Stock trades at 2.61, above its 50dma 2.45. However it is trading below its 200dma 2.84. The stock remains weak though short term bullish momentum supports price action. It needs to close above 2.84 for bullish price action to continue
The 52 week high is at 4.90 and the 52week low is at 1.67
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.68 times its book value
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 23.91%
– has a low return on equity of -2.08% for last 3 years.
Competition
– The industry trades at a mean P/E of 30.9x. Manorama Indust. trades at the industry’s max P/E of 102.29x. 519230 trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 7.0. 519230 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 26.7%. The max 1- month return was given by Vijay Solvex: a return of 119.26 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.02 cr compared to Rs 0.03 cr for period ended Jun 2020, a fall of 33.3%
Company reported negative operating profit of Rs -0.02 cr for period ended Jun 2021. For same period last year, operating profit was 0.0
The EPS for Jun 2021 was Rs -0.04 compared to Rs -0.1 for previous quarter ended Mar 2021 and Rs 0.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.06 cr for period ended TTM vis-vis sales of Rs 0.07 cr for the period ended Mar 2021, a fall of 16.7%.
Operating margins shrank to -150.0% for period ended TTM vis-vis -100.0% for period ended Mar 2021, contraction of 5000.0 bps.
Net Profit reported at Rs -0.1 cr for period ended TTM vis-vis sales of Rs -0.07 cr for the period ended Mar 2021, falling 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 stock has given a return of 12% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -60% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -150% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 76.09% vis-vis 76.11% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.68 times its book value – has low interest coverage ratio.
-Promoter holding is low: 23.91%
– has a low return on equity of -2.08% 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 above its 50 DMA 2.45 and is trading at 2.61, thus bullish price action wise.
