Mehabe score: 7 G Factor: 5 Piotski Score: 6 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 6.
Description
Grovy India is engaged in the business of Real Estate & Share Trading of the Company.Site:539522Main Symbol:GROVY
Stock trades at 42.0, above its 50dma 32.51. It also trades above its 200dma 27.41. The stock remains bullish on techicals
The 52 week high is at 42.05 and the 52week low is at 22.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.00 times its book value
Weakness
– has a low return on equity of 0.65% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.1.27 Cr.
Competition
– The industry trades at a mean P/E of 39.5x. Phoenix Mills trades at the industry’s max P/E of 293.37x. 539522 trades at a P/E of 7.34x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. 539522 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 12.6%. The max 1- month return was given by Prestige Estates: a return of 28.63 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 4.23 cr compared to Rs 0.72 cr for period ended Jun 2020, a rise of 487.5%
Company reported negative operating profit of Rs -0.08 cr for period ended Jun 2021. For same period last year, operating profit was -0.09
The EPS for Jun 2021 was Rs -0.36 compared to Rs -0.04 for previous quarter ended Mar 2021 and Rs 0.87 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.8 cr for period ended TTM vis-vis sales of Rs 13.29 cr for the period ended Mar 2021, a healthy growth of 20.9%. The 3 year sales cagr stood at 24.2%.
Operating margins shrank to 1.73% for period ended TTM vis-vis 2.11% for period ended Mar 2021, contraction of 38.0 bps.
Net Profit reported at Rs 1.13 cr for period ended TTM vis-vis sales of Rs 1.44 cr for the period ended Mar 2021, falling 27.4%.
Company recorded a healthy Net Profit CAGR of 152.7% 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 0.72 cr for period ended Mar 2021 vis-vis Rs -1.07 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 98% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -26% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 207% vis-vis a compounded profit growth of 129% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.28% vis-vis 25.28% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.00 times its book value – has a low return on equity of 0.65% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.1.27 Cr.
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 32.51 and is trading at 42.0, thus bullish price action wise.
