Mehabe score: 2 G Factor: 7 Piotski Score: 7 The stock has a rating . 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 7 and Piotski score of 7.
Description
Acknit Industries is engaged in the business of Manufacturing of all types of Garments, Gloves (Both Cotton & Leather) and Other Apparels (Both Cotton & Leather).Site:530043Main Symbol:ACKNIT
Stock trades at 116.0, below its 50dma 125.69. However it is trading above its 200dma 100.58. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 125.69.
The 52 week high is at 147.80 and the 52week low is at 52.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.65 times its book value
Weakness
– The company has delivered a poor sales growth of 0.97% over past five years.
– has a low return on equity of 10.55% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 26.14% of their holding.
-Earnings include an other income of Rs.3.85 Cr.
Competition
– The industry trades at a mean P/E of 23.7x. Garware Tech. trades at the industry’s max P/E of 38.57x. 530043 trades at a P/E of 6.02x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. 530043 has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 0.1%. The max 1- month return was given by PDS Multi.: a return of 28.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 37.95 cr compared to Rs 24.85 cr for period ended Jun 2020, a rise of 52.7%
Operating Profits reported at Rs 2.42 cr for period ended Jun 2021 vis-vis 1.94 for period ended Jun 2020 .
Operating Margins contracted -143.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.85 compared to Rs 5.26 for previous quarter ended Mar 2021 and Rs 1.38 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 182.0 cr for period ended TTM vis-vis sales of Rs 168.0 cr for the period ended Mar 2021, a growth of 7.7%. The 3 year sales cagr stood at 1.9%.
Net Profit reported at Rs 7.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 14.3%.
Company recorded a healthy Net Profit CAGR of 11.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 82% 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 -1% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 34% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.44% vis-vis 0.44% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 49.22% vis-vis 49.22% for Mar 2021
Conclusion
– Stock is trading at 0.65 times its book value – The company has delivered a poor sales growth of 0.97% over past five years.
– has a low return on equity of 10.55% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 26.14% of their holding.
-Earnings include an other income of Rs.3.85 Cr.
