Mehabe score: 7 G Factor: 4 Piotski Score: 7 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 7.
Description
R & B Denims is engaged in the business of manufacturing and sale of quality Denim Textile products.(Source : 201903 Annual Report Page No: 79)Site:538119Main Symbol:RNBDENIMS
Stock trades at 139.0, above its 50dma 86.27. It also trades above its 200dma 57.27. The stock remains bullish on techicals
The 52 week high is at 138.60 and the 52week low is at 25.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 16.3x. RSWM Ltd trades at the industry’s max P/E of 45.9x. 538119 trades at a P/E of 19.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 538119 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 39.4%. The max 1- month return was given by R&B Denims: a return of 81.29 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 46.17 cr compared to Rs 1.37 cr for period ended Jun 2020, a rise of 3270.1%
Company reported operating profit of Rs 7.37 cr for period ended Jun 2021, operating profit margin at 16.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 2.4 compared to Rs 5.24 for previous quarter ended Mar 2021 and Rs -1.72 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 227.0 cr for period ended TTM vis-vis sales of Rs 182.0 cr for the period ended Mar 2021, a healthy growth of 19.8%. The 3 year sales cagr stood at -2.4%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 14.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 16.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 37.5%.
Company recorded a healthy Net Profit CAGR of 58.7% 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 16.0 cr for period ended Mar 2021 vis-vis Rs 6.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 26.0% compared to 0% over the last 3 Years. – The stock has given a return of 320% on a 1 Year basis vis-vis a return of 59% over the last 3 Years. – The compounded sales growth on a TTM bassis is -29% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 209% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.21% vis-vis 26.21% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
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 86.27 and is trading at 139.0, thus bullish price action wise.
