Mehabe score: 4 G Factor: 6 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 6 and Piotski score of 5.
Description
Super Spinning Mills is engaged in the manufacture and selling of cotton, cotton yarn and allied products.Site:SUPERSPINMain Symbol:SUPERSPIN
Stock trades at 13.8, above its 50dma 10.22. It also trades above its 200dma 6.78. The stock remains bullish on techicals
The 52 week high is at 14.62 and the 52week low is at 3.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.73 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -32.48% over past five years.
– has a low return on equity of -13.89% for last 3 years.
-‘s cost of borrowing seems high
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. SUPERSPIN trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. SUPERSPIN has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 35.6%. The max 1- month return was given by Nitin Spinners: a return of 54.71 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 16.4 cr compared to Rs 3.92 cr for period ended Jun 2020, a rise of 318.4%
Company reported operating profit of Rs 1.4 cr for period ended Jun 2021, operating profit margin at 8.5 %.
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 -0.08 compared to Rs 0.33 for previous quarter ended Mar 2021 and Rs -0.72 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 61.37 cr for period ended TTM vis-vis sales of Rs 48.88 cr for the period ended Mar 2021, a healthy growth of 20.4%. The 3 year sales cagr stood at -33.4%.
Operating margins expanded to -0.9% for period ended TTM vis-vis -9.41% for period ended Mar 2021, expansion of 851.0 bps.
Net Profit reported at Rs -4.38 cr for period ended TTM vis-vis sales of Rs -7.89 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 -7.0% compared to -14.0% over the last 3 Years. – The stock has given a return of 220% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -66% vis-vis a compounded sales growth of -43% over the last 3 Years. – The compounded profit growth on a TTM basis is 56% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 57.2% vis-vis 57.5% for Mar 2021
Conclusion
– Stock is trading at 0.73 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -32.48% over past five years.
– has a low return on equity of -13.89% for last 3 years.
-‘s cost of borrowing seems high
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 10.22 and is trading at 13.8, thus bullish price action wise.
