Mehabe score: 6 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Divyashakti Granites Limited is an India-based exporter of granite products. The Company is engaged in the manufacture and export of polished granites slabs, tiles and monuments.Site:526315Main Symbol:DIVSHKT
Stock trades at 73.0, above its 50dma 61.83. It also trades above its 200dma 52.82. The stock remains bullish on techicals
The 52 week high is at 79.00 and the 52week low is at 33.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.67 times its book value
– has been maintaining a healthy dividend payout of 25.00%
-Promoter holding has increased by 3.97% over last quarter.
Weakness
– The company has delivered a poor sales growth of -3.59% over past five years.
– has a low return on equity of 6.02% for last 3 years.
– has high debtors of 445.58 days.
Competition
– The industry trades at a mean P/E of 27.3x. Jubilant Ingrevia trades at the industry’s max P/E of 153.95x. 526315 trades at a P/E of 11.9x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. 526315 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 9.9%. The max 1- month return was given by C D S L: a return of 27.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 14.62 cr compared to Rs 9.61 cr for period ended Jun 2020, a rise of 52.1%
Operating Profits reported at Rs 3.17 cr for period ended Jun 2021 vis-vis 2.01 for period ended Jun 2020 .
Operating Margins expanded 76.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.13 compared to Rs 1.77 for previous quarter ended Mar 2021 and Rs 1.41 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 61.63 cr for period ended TTM vis-vis sales of Rs 56.62 cr for the period ended Mar 2021, a growth of 8.1%. The 3 year sales cagr stood at 22.7%.
Operating margins shrank to 17.18% for period ended TTM vis-vis 18.39% for period ended Mar 2021, contraction of 121.0 bps.
Net Profit reported at Rs 8.06 cr for period ended TTM vis-vis sales of Rs 6.3 cr for the period ended Mar 2021, rising 21.8%.
Company recorded a healthy Net Profit CAGR of 16.1% 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 10.48 cr for period ended Mar 2021 vis-vis Rs -16.44 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 6.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 87% 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 -6% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 26.66% vis-vis 30.63% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.67 times its book value
– has been maintaining a healthy dividend payout of 25.00%
-Promoter holding has increased by 3.97% over last quarter. – The company has delivered a poor sales growth of -3.59% over past five years.
– has a low return on equity of 6.02% for last 3 years.
– has high debtors of 445.58 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 61.83 and is trading at 73.0 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
