Mehabe score: 5 G Factor: 1 Piotski Score: 5 The stock has a rating OBSERVE & 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 1 and Piotski score of 5.
Description
Ajmera Realty & Infra India is engaged in real estate businessSite:AJMERAMain Symbol:AJMERA
Stock trades at 321.0, above its 50dma 244.26. It also trades above its 200dma 163.18. The stock remains bullish on techicals
The 52 week high is at 324.90 and the 52week low is at 75.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.87% over past five years.
– has a low return on equity of 7.40% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 188.77 days.
Competition
– The industry trades at a mean P/E of 39.6x. Phoenix Mills trades at the industry’s max P/E of 293.33x. AJMERA trades at a P/E of 37.7x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. AJMERA has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 12.9%. The max 1- month return was given by Prestige Estates: a return of 27.93 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 135.0 cr compared to Rs 40.0 cr for period ended Jun 2020, a rise of 237.5%
Operating Profits reported at Rs 33.0 cr for period ended Jun 2021 vis-vis 13.0 for period ended Jun 2020 .
Operating Margins contracted -805.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.89 compared to Rs 3.52 for previous quarter ended Mar 2021 and Rs 0.59 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 442.0 cr for period ended TTM vis-vis sales of Rs 347.0 cr for the period ended Mar 2021, a healthy growth of 21.5%. The 3 year sales cagr stood at 5.0%.
Operating margins shrank to 26.0% for period ended TTM vis-vis 28.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 38.0 cr for period ended TTM vis-vis sales of Rs 30.0 cr for the period ended Mar 2021, rising 21.1%.
Company reported a poor Net Profit CAGR of -20.3% 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 196.0 cr for period ended Mar 2021 vis-vis Rs -18.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 330% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is -8% vis-vis a compounded profit growth of -28% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.08% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 30.18% vis-vis 30.26% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.87% over past five years.
– has a low return on equity of 7.40% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 188.77 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 244.26 and is trading at 321.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
