Mehabe score: 3 G Factor: 3 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 3 and Piotski score of 4.
Description
Lesha Industries is engaged in the Business of Trading of Steel.Site:533602Main Symbol:LESHAIND
Stock trades at 7.18, below its 50dma 7.21. However it is trading above its 200dma 4.0. 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 7.21.
The 52 week high is at 10.60 and the 52week low is at 0.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 112.90 to 31.80 days.
-Promoter holding has increased by 4.01% over last quarter.
Weakness
– Stock is trading at 4.45 times its book value
-The company has delivered a poor sales growth of -21.68% over past five years.
– has a low return on equity of -0.45% for last 3 years.
Competition
– The industry trades at a mean P/E of 45.9x. Lesha Industries trades at the industry’s max P/E of 526.53x. 533602 trades at a P/E of 527.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 533602 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -0.8%. The max 1- month return was given by PTC India: a return of 32.02 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.34 cr compared to Rs 0.59 cr for period ended Sep 2020, a fall of 42.4%
The EPS for Sep 2021 was Rs 0.01 compared to Rs 0.0 for previous quarter ended Jun 2021 and Rs 0.01 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.7 cr for period ended TTM vis-vis sales of Rs 2.64 cr for the period ended Mar 2021, a healthy growth of 28.6%. The 3 year sales cagr stood at 55.7%.
Operating margins expanded to 2.43% for period ended TTM vis-vis 0.38% for period ended Mar 2021, expansion of 205.0 bps.
Net Profit reported at Rs 0.15 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 440% on a 1 Year basis vis-vis a return of 143% over the last 3 Years. – The compounded sales growth on a TTM bassis is 89% vis-vis a compounded sales growth of -42% over the last 3 Years. – The compounded profit growth on a TTM basis is 215% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 54.87% vis-vis 58.88% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 112.90 to 31.80 days.
-Promoter holding has increased by 4.01% over last quarter. – Stock is trading at 4.45 times its book value
-The company has delivered a poor sales growth of -21.68% over past five years.
– has a low return on equity of -0.45% for last 3 years.
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 7.21 and is trading at 7.18. 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
