Mehabe score: 0 G Factor: 1 Piotski Score: 4 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 1 and Piotski score of 4.
Description
TIL is engaged in manufacturing and marketing of a comprehensive range of material handling, lifting, port and road construction solutions with integrated customer support and after sales service. Overall the Companys products and services are termed as Material Handling Solutions (MHS).Site:TILMain Symbol:TIL
Stock trades at 142.0, below its 50dma 178.39 and below its 200dma 173.79. The stock remains bearish on technicals
The 52 week high is at 245.00 and the 52week low is at 125.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.62 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.02% over past five years.
– has a low return on equity of -7.37% for last 3 years.
-Contingent liabilities of Rs.44.42 Cr.
– has high debtors of 277.60 days.
Competition
– The industry trades at a mean P/E of 20.2x. GMM Pfaudler trades at the industry’s max P/E of 110.03x. TIL trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. TIL has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is -7.2%. The max 1- month return was given by Hind.Aeronautics: a return of 5.6 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 11.0 cr compared to Rs 45.0 cr for period ended Jun 2020, a fall of 75.6%
Company reported negative operating profit of Rs -41.0 cr for period ended Jun 2021. For same period last year, operating profit was -8.0
The EPS for Jun 2021 was Rs -53.36 compared to Rs -36.63 for previous quarter ended Mar 2021 and Rs -17.01 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 280.0 cr for period ended TTM vis-vis sales of Rs 313.0 cr for the period ended Mar 2021, a fall of 11.8%. The 3 year sales cagr stood at -13.9%.
Operating margins shrank to -24.0% for period ended TTM vis-vis -10.0% for period ended Mar 2021, contraction of 1400.0 bps.
Net Profit reported at Rs -105.0 cr for period ended TTM vis-vis sales of Rs -68.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -28.0% compared to -7.0% over the last 3 Years. – The stock has given a return of -9% on a 1 Year basis vis-vis a return of -27% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -170% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 31.1% vis-vis 31.1% for Mar 2021
Conclusion
– Stock is trading at 0.62 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.02% over past five years.
– has a low return on equity of -7.37% for last 3 years.
-Contingent liabilities of Rs.44.42 Cr.
– has high debtors of 277.60 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 178.39 and is trading at 142.0. 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
