Mehabe score: 0 G Factor: 0 Piotski Score: 3 The stock has a rating SELL. 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 0 and Piotski score of 3.
Description
Shangar Decor is engaged in the business of Other Business Activities.Site:540259Main Symbol:SHANGAR
Stock trades at 8.53, below its 50dma 9.88 and below its 200dma 12.89. The stock remains bearish on technicals
The 52 week high is at 30.16 and the 52week low is at 8.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Promoter holding has decreased over last quarter: -33.21%
-The company has delivered a poor sales growth of -1.55% over past five years.
-Promoter holding is low: 24.75%
– has a low return on equity of 4.31% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 607.98 days.
Competition
– The industry trades at a mean P/E of 26.0x. Jubilant Ingrevia trades at the industry’s max P/E of 175.3x. 540259 trades at a P/E of 41.8x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 9.0. 540259 has a G-Factor of 0 and Piotski scoreof 3.
– Average 1 month return for industry is 3.7%. The max 1- month return was given by Jubilant Ingrevia: a return of 23.85 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.43 cr compared to Rs 1.94 cr for period ended Jun 2020, a fall of 77.8%
Operating Profits reported at Rs 0.31 cr for period ended Jun 2021 vis-vis 0.96 for period ended Jun 2020 .
Operating Margins expanded 2260.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.03 compared to Rs -0.59 for previous quarter ended Mar 2021 and Rs 0.44 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.94 cr for period ended TTM vis-vis sales of Rs 3.44 cr for the period ended Mar 2021, a fall of 77.3%. The 3 year sales cagr stood at -32.2%.
Operating margins shrank to 31.96% for period ended TTM vis-vis 37.21% for period ended Mar 2021, contraction of 525.0 bps.
Net Profit reported at Rs -0.49 cr for period ended TTM vis-vis sales of Rs 0.25 cr for the period ended Mar 2021, falling 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of -56% on a 1 Year basis vis-vis a return of 32% over the last 3 Years. – The compounded sales growth on a TTM bassis is -50% vis-vis a compounded sales growth of -23% over the last 3 Years. – The compounded profit growth on a TTM basis is -24% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 75.25% vis-vis 42.04% for Mar 2021
Conclusion
– – Promoter holding has decreased over last quarter: -33.21%
-The company has delivered a poor sales growth of -1.55% over past five years.
-Promoter holding is low: 24.75%
– has a low return on equity of 4.31% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 607.98 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 9.88 and is trading at 8.53. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
