Mehabe score: 5 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
Rexnord Electronics & Controls is engaged in the business of Manufacturing and sale of instrument cooling Fans and shaded pole motors used for industrial purpose.Site:531888Main Symbol:REXNORD
Stock trades at 59.4, above its 50dma 57.64. It also trades above its 200dma 42.42. The stock remains bullish on techicals
The 52 week high is at 74.90 and the 52week low is at 19.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.53% over past five years.
– has a low return on equity of 11.36% for last 3 years.
Competition
– The industry trades at a mean P/E of 30.2x. A B B trades at the industry’s max P/E of 118.21x. 531888 trades at a P/E of 14.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 531888 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 0.4%. The max 1- month return was given by Havells India: a return of 20.73 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 17.72 cr compared to Rs 16.04 cr for period ended Mar 2020, a rise of 10.5%
Operating Profits reported at Rs 3.45 cr for period ended Mar 2021 vis-vis 1.53 for period ended Mar 2020 .
Operating Margins expanded 993.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.73 compared to Rs 0.52 for previous quarter ended Dec 2020 and Rs 0.6 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 50.16 cr for period ended Mar 2021 vis-vis sales of Rs 65.23 cr for the period ended Mar 2020, a fall of 30.0%. The 3 year sales cagr stood at -3.9%.
Operating margins expanded to 14.91% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, expansion of 291.0 bps.
Net Profit reported at Rs 3.09 cr for period ended Mar 2021 vis-vis sales of Rs 4.07 cr for the period ended Mar 2020, falling 31.7%.
Company reported a poor Net Profit CAGR of -3.5% 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 11.87 cr for period ended Mar 2021 vis-vis Rs 6.4 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 11.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 177% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -23% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 30.15% vis-vis 30.15% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -0.53% over past five years.
– has a low return on equity of 11.36% for last 3 years.
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 57.64 and is trading at 59.4, thus bullish price action wise.
