Mehabe score: 1 G Factor: 3 Piotski Score: 5 The stock has a rating SELL. 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 3 and Piotski score of 5.
Description
Tara Chand Logistic Solutions is engaged in Sale of Products, Handling & Transportation, Tangible Goods Services.Site:TARACHANDMain Symbol:www.nseindia.com
Stock trades at 38.2, below its 50dma 39.07. However it is trading above its 200dma 36.63. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 39.07.
The 52 week high is at 52.35 and the 52week low is at 26.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.95 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of 11.68% for last 3 years.
– has high debtors of 201.97 days.
Competition
– The industry trades at a mean P/E of 34.3x. Mahindra Logis. trades at the industry’s max P/E of 89.33x. TARACHAND trades at a P/E of 8.02x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. TARACHAND has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by Allcargo Logist.: a return of 23.98 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 30.6 cr compared to Rs 18.03 cr for period ended Jun 2020, a rise of 69.7%
Operating Profits reported at Rs 9.23 cr for period ended Jun 2021 vis-vis 4.82 for period ended Jun 2020 .
Operating Margins expanded 343.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.55 compared to Rs 0.96 for previous quarter ended Mar 2021 and Rs -1.5 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 124.0 cr for period ended TTM vis-vis sales of Rs 112.0 cr for the period ended Mar 2021, a growth of 9.7%. The 3 year sales cagr stood at 7.1%.
Net Profit reported at Rs 5.0 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, rising 40.0%.
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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 0% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 77% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Conclusion
– Stock is trading at 0.95 times its book value – has low interest coverage ratio.
– has a low return on equity of 11.68% for last 3 years.
– has high debtors of 201.97 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 39.07 and is trading at 38.2. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
