Mehabe score: 2 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
Brahmaputra Infrastructure is into EPC & Real Estate Development Business and handling various projects like Construction of Bridges, Flyovers, Highways, Airport, Building Construction, Tunnel projects, Mining projects.Site:535693Main Symbol:BRAHMINFRA
Stock trades at 18.8, above its 50dma 17.31. It also trades above its 200dma 16.8. The stock remains bullish on techicals
The 52 week high is at 22.00 and the 52week low is at 9.44
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.35 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.21% over past five years.
– has a low return on equity of -3.87% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 100.00% of their holding.
– has high debtors of 151.82 days.
Competition
– The industry trades at a mean P/E of 34.3x. Macrotech Devel. trades at the industry’s max P/E of 827.97x. 535693 trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 535693 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 17.5%. The max 1- month return was given by National Standar: a return of 39.22 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 28.09 cr compared to Rs 20.3 cr for period ended Jun 2020, a rise of 38.4%
Operating Profits reported at Rs 4.82 cr for period ended Jun 2021 vis-vis 10.09 for period ended Jun 2020 .
Operating Margins contracted -3254.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.43 compared to Rs 0.92 for previous quarter ended Mar 2021 and Rs -1.54 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 170.0 cr for period ended TTM vis-vis sales of Rs 163.0 cr for the period ended Mar 2021, a growth of 4.1%. The 3 year sales cagr stood at -10.6%.
Operating margins shrank to 11.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, contraction of 500.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs -0.0 cr for the period ended Mar 2021, rising 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 46% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is 78% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.95% vis-vis 25.53% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.35 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.21% over past five years.
– has a low return on equity of -3.87% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 100.00% of their holding.
– has high debtors of 151.82 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 17.31 and is trading at 18.8 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
