Mehabe score: 2 G Factor: 1 Piotski Score: 3 The stock has a rating OBSERVE & 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 1 and Piotski score of 3.
Description
Sturdy Industries ie engaged in the business of Manufacturing & Supplying of Sprinkler and Drip Irrigation Systems, Conductor and Cable and Trading of Polymers and Aluminiums.(Source : 201903 Annual Report Page No:99)Site:530611Main Symbol:STURDY
Stock trades at 0.53, above its 50dma 0.47. It also trades above its 200dma 0.47. The stock remains bullish on techicals
The 52 week high is at 0.61 and the 52week low is at 0.33
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -34.47% over past five years.
-Promoter holding is low: 24.53%
-Contingent liabilities of Rs.81.17 Cr.
-Promoters have pledged 76.15% of their holding.
– has high debtors of 277.30 days.
Competition
– The industry trades at a mean P/E of 12.0x. Arfin India trades at the industry’s max P/E of 19.79x. 530611 trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. 530611 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is -3.5%. The max 1- month return was given by PG Foils: a return of 24.9 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.17 cr compared to Rs 9.09 cr for period ended Jun 2020, a fall of 65.1%
Company reported negative operating profit of Rs -0.9 cr for period ended Jun 2021. For same period last year, operating profit was -1.45
The EPS for Jun 2021 was Rs -0.11 compared to Rs -0.24 for previous quarter ended Mar 2021 and Rs -0.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 45.0 cr for period ended TTM vis-vis sales of Rs 51.0 cr for the period ended Mar 2021, a fall of 13.3%. The 3 year sales cagr stood at -37.6%.
Operating margins shrank to -31.0% for period ended TTM vis-vis -30.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs -37.0 cr for period ended TTM vis-vis sales of Rs -29.0 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 stock has given a return of 20% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -50% vis-vis a compounded sales growth of -37% over the last 3 Years. – The compounded profit growth on a TTM basis is -944% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 50.46% vis-vis 50.46% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -34.47% over past five years.
-Promoter holding is low: 24.53%
-Contingent liabilities of Rs.81.17 Cr.
-Promoters have pledged 76.15% of their holding.
– has high debtors of 277.30 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 0.47 and is trading at 0.53 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
