Mehabe score: 8 G Factor: 5 Piotski Score: 6 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 5 and Piotski score of 6. Site:542682Main Symbol:HARISH
Stock trades at 45.0, above its 50dma 38.94. It also trades above its 200dma 31.76. The stock remains bullish on techicals
The 52 week high is at 53.70 and the 52week low is at 11.64
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
– has a low return on equity of -1.41% for last 3 years.
-Earnings include an other income of Rs.3.88 Cr.
-Debtor days have increased from 64.66 to 79.96 days.
Competition
– The industry trades at a mean P/E of 22.9x. MTAR Technologie trades at the industry’s max P/E of 88.84x. 542682 trades at a P/E of 8.58x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. 542682 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by Harish Textile: a return of 49.75 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 20.58 cr compared to Rs 5.54 cr for period ended Jun 2020, a rise of 271.5%
Company reported operating profit of Rs 1.49 cr for period ended Jun 2021, operating profit margin at 7.2 %.
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 0.6 compared to Rs 0.39 for previous quarter ended Mar 2021 and Rs -4.68 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 96.84 cr for period ended TTM vis-vis sales of Rs 81.8 cr for the period ended Mar 2021, a healthy growth of 15.5%. The 3 year sales cagr stood at 36.6%.
Operating margins expanded to 5.59% for period ended TTM vis-vis 4.21% for period ended Mar 2021, expansion of 138.0 bps.
Net Profit reported at Rs 3.51 cr for period ended TTM vis-vis sales of Rs 1.75 cr for the period ended Mar 2021, rising 50.1%.
Company recorded a healthy Net Profit CAGR of 54.6% 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 1.43 cr for period ended Mar 2021 vis-vis Rs -6.88 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 21.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 42% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 31% over the last 3 Years. – The compounded profit growth on a TTM basis is 158% vis-vis a compounded profit growth of 37% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 27.77% vis-vis 27.77% for Mar 2021
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of -1.41% for last 3 years.
-Earnings include an other income of Rs.3.88 Cr.
-Debtor days have increased from 64.66 to 79.96 days.
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 38.94 and is trading at 45.0, thus bullish price action wise.
