Mehabe score: 6 G Factor: 4 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 4 and Piotski score of 6.
Description
JTL Infra Limited manufactures and sells electric resistance welding (ERW) black and galvanized steel pipes, development of infrastructural activities and all other activities.Site:534600Main Symbol:JTLINFRA
Stock trades at 929.0, above its 50dma 770.57. It also trades above its 200dma 524.21. The stock remains bullish on techicals
The 52 week high is at 945.00 and the 52week low is at 111.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 144.41% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 29.43%
Weakness
– Stock is trading at 12.12 times its book value
-Promoter holding has decreased over last quarter: -1.88%
Competition
– The industry trades at a mean P/E of 14.7x. Ratnamani Metals trades at the industry’s max P/E of 37.2x. 534600 trades at a P/E of 26.7x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 9.0. 534600 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 9.6%. The max 1- month return was given by Mah. Seamless: a return of 38.99 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 263.0 cr compared to Rs 80.0 cr for period ended Sep 2020, a rise of 228.8%
Operating Profits reported at Rs 19.0 cr for period ended Sep 2021 vis-vis 5.0 for period ended Sep 2020 .
Operating Margins expanded 97.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 12.21 compared to Rs 7.59 for previous quarter ended Jun 2021 and Rs 2.71 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 747.0 cr for period ended TTM vis-vis sales of Rs 435.0 cr for the period ended Mar 2021, a healthy growth of 41.8%. The 3 year sales cagr stood at 32.4%.
Operating margins shrank to 7.0% for period ended TTM vis-vis 8.0% 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 20.0 cr for the period ended Mar 2021, rising 45.9%.
Company recorded a healthy Net Profit CAGR of 38.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -5.0 cr for period ended Mar 2021 vis-vis Rs -20.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 29.0% over the last 3 Years. – The stock has given a return of 535% on a 1 Year basis vis-vis a return of 110% over the last 3 Years. – The compounded sales growth on a TTM bassis is 174% vis-vis a compounded sales growth of 37% over the last 3 Years. – The compounded profit growth on a TTM basis is 262% vis-vis a compounded profit growth of 36% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 34.04% vis-vis 32.16% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 144.41% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 29.43% – Stock is trading at 12.12 times its book value
-Promoter holding has decreased over last quarter: -1.88%
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 770.57 and is trading at 929.0, thus bullish price action wise.
