Mehabe score: 4 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
Tgv Sraac (Formerly Known As Sree Rayalaseema Alkalies And Allied Chemicals ) is engaged in the Business of leading producer of Chlor-Alkali products, Chloromethane and also manufactures Castor Derivatives and Fatty Acids.Site:507753Main Symbol:TGVSL
Stock trades at 39.8, above its 50dma 35.79. It also trades above its 200dma 29.98. The stock remains bullish on techicals
The 52 week high is at 44.30 and the 52week low is at 16.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.70 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.32% over past five years.
– has a low return on equity of 10.22% for last 3 years.
Competition
– The industry trades at a mean P/E of 52.3x. Lords Chloro trades at the industry’s max P/E of 132.09x. 507753 trades at a P/E of 14.7x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. 507753 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 30.4%. The max 1- month return was given by Punjab Alkalies: a return of 46.35 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 250.68 cr compared to Rs 236.65 cr for period ended Jun 2020, a rise of 5.9%
Operating Profits reported at Rs 39.37 cr for period ended Jun 2021 vis-vis 33.3 for period ended Jun 2020 .
Operating Margins expanded 163.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.91 compared to Rs 0.22 for previous quarter ended Mar 2021 and Rs 0.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1023.0 cr for period ended TTM vis-vis sales of Rs 1009.0 cr for the period ended Mar 2021, a growth of 1.4%. The 3 year sales cagr stood at -5.3%.
Net Profit reported at Rs 33.0 cr for period ended TTM vis-vis sales of Rs 29.0 cr for the period ended Mar 2021, rising 12.1%.
Company reported a poor Net Profit CAGR of -21.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 137.0 cr for period ended Mar 2021 vis-vis Rs 122.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 140% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is -39% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.54% vis-vis 36.31% for Mar 2021
Conclusion
– Stock is trading at 0.70 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.32% over past five years.
– has a low return on equity of 10.22% 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 35.79 and is trading at 39.8, thus bullish price action wise.
