Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 6.
Description
G M Breweries Ltd, set up in 1981 manufactures and markets Alcoholic Beverages such as Country Liquor (CL) and Indian-made Foreign Liquor (IMFL). [1]Site:GMBREWMain Symbol:GMBREW
Stock trades at 883.0, above its 50dma 574.1. It also trades above its 200dma 507.19. The stock remains bullish on techicals
The 52 week high is at 654.00 and the 52week low is at 365.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -1.11% over past five years.
Competition
– The industry trades at a mean P/E of 45.6x. United Breweries trades at the industry’s max P/E of 175.99x. GMBREW trades at a P/E of 16.2x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 9.0. GMBREW has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 29.4%. The max 1- month return was given by G M Breweries: a return of 53.9 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 116.0 cr compared to Rs 73.0 cr for period ended Sep 2020, a rise of 58.9%
Operating Profits reported at Rs 29.0 cr for period ended Sep 2021 vis-vis 15.0 for period ended Sep 2020 .
Operating Margins expanded 445.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 11.95 compared to Rs 6.37 for previous quarter ended Jun 2021 and Rs 6.13 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 425.0 cr for period ended TTM vis-vis sales of Rs 340.0 cr for the period ended Mar 2021, a healthy growth of 20.0%. The 3 year sales cagr stood at -2.9%.
Operating margins expanded to 24.0% for period ended TTM vis-vis 22.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 100.0 cr for period ended TTM vis-vis sales of Rs 80.0 cr for the period ended Mar 2021, rising 20.0%.
Company recorded a Net Profit CAGR of 6.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 129% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 120% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.38% vis-vis 1.63% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 24.19% vis-vis 23.94% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter – The company has delivered a poor sales growth of -1.11% over past five years.
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 574.1 and is trading at 883.0, thus bullish price action wise.
