Mehabe score: 2 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
Jaiprakash Associates Ltd is a diversified infrastructure company. The Company’s principal business activities include engineering, construction and real estate development, and manufacture of cement.Site:JPASSOCIATMain Symbol:JPASSOCIAT
Stock trades at 11.4, below its 50dma 11.63. However it is trading above its 200dma 8.49. 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 11.63.
The 52 week high is at 15.90 and the 52week low is at 2.70
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -19.02% over past five years.
– has a low return on equity of -22.20% for last 3 years.
-Contingent liabilities of Rs.6414.82 Cr.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 35.1x. Macrotech Devel. trades at the industry’s max P/E of 365.15x. JPASSOCIAT trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. JPASSOCIAT has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 24.7%. The max 1- month return was given by National Standar: a return of 153.35 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1484.0 cr compared to Rs 1131.0 cr for period ended Jun 2020, a rise of 31.2%
Operating Profits reported at Rs 65.0 cr for period ended Jun 2021 vis-vis 27.0 for period ended Jun 2020 .
Operating Margins expanded 199.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -1.18 compared to Rs 1.74 for previous quarter ended Mar 2021 and Rs -1.37 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6759.0 cr for period ended TTM vis-vis sales of Rs 6406.0 cr for the period ended Mar 2021, a growth of 5.2%. The 3 year sales cagr stood at -9.8%.
Net Profit reported at Rs -619.0 cr for period ended TTM vis-vis sales of Rs -662.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1105.0 cr for period ended Mar 2021 vis-vis Rs 827.0 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 -37.0% compared to -22.0% over the last 3 Years. – The stock has given a return of 203% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -163% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.98% vis-vis 0.96% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 58.25% vis-vis 58.0% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -19.02% over past five years.
– has a low return on equity of -22.20% for last 3 years.
-Contingent liabilities of Rs.6414.82 Cr.
– might be capitalizing the interest cost
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 below its 50 DMA 11.63 and is trading at 11.4. Shows a near term lack of buying interest.
