Mehabe score: 5 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
Goodluck India is engaged in the business of manufacture and sale of engineering product i.e. heavy engineered structure, transmission and distribution tower, CDW Tubes, etc.,Site:GOODLUCKMain Symbol:GOODLUCK
Stock trades at 261.0, above its 50dma 140.27. It also trades above its 200dma 90.85. The stock remains bullish on techicals
The 52 week high is at 260.80 and the 52week low is at 34.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.83% over past five years.
– has a low return on equity of 9.73% for last 3 years.
Competition
– The industry trades at a mean P/E of 15.8x. Apollo Tricoat trades at the industry’s max P/E of 47.65x. GOODLUCK trades at a P/E of 21.3x
– Industry’s mean G-Factor is 6.0 while the mean Piotski score is 8.0. GOODLUCK has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 26.3%. The max 1- month return was given by Goodluck India: a return of 132.03 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 571.0 cr compared to Rs 252.0 cr for period ended Jun 2020, a rise of 126.6%
Operating Profits reported at Rs 40.0 cr for period ended Jun 2021 vis-vis 23.0 for period ended Jun 2020 .
Operating Margins contracted -212.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.53 compared to Rs 3.34 for previous quarter ended Mar 2021 and Rs 0.55 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1892.0 cr for period ended TTM vis-vis sales of Rs 1572.0 cr for the period ended Mar 2021, a healthy growth of 16.9%. The 3 year sales cagr stood at 4.4%.
Net Profit reported at Rs 42.0 cr for period ended TTM vis-vis sales of Rs 30.0 cr for the period ended Mar 2021, rising 28.6%.
Company recorded a healthy Net Profit CAGR of 10.7% over the last 3 years
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 8.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 594% on a 1 Year basis vis-vis a return of 54% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is -11% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 34.68% vis-vis 34.69% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.83% over past five years.
– has a low return on equity of 9.73% 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 140.27 and is trading at 261.0, thus bullish price action wise.
