Mehabe score: 5 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
Stratmont Industries is presently engaged in the business of trading of coking coal / lamc.Site:530495Main Symbol:STRATMONT
Stock trades at 38.9, above its 50dma 29.67. It also trades above its 200dma 20.39. The stock remains bullish on techicals
The 52 week high is at 45.85 and the 52week low is at 10.34
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 6.84 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.05% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 4075.83 days.
Competition
– The industry trades at a mean P/E of 46.1x. Adani Enterp. trades at the industry’s max P/E of 132.53x. 530495 trades at a P/E of 24.3x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 530495 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 7.2%. The max 1- month return was given by PTC India: a return of 37.98 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.12 cr compared to Rs 0.18 cr for period ended Sep 2020, a fall of 33.3%
Company reported negative operating profit of Rs -0.24 cr for period ended Sep 2021. For same period last year, operating profit was -0.01
The EPS for Sep 2021 was Rs -0.69 compared to Rs 1.57 for previous quarter ended Jun 2021 and Rs -0.03 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.03 cr for period ended TTM vis-vis sales of Rs 0.42 cr for the period ended Mar 2021, a healthy growth of 97.7%. The 3 year sales cagr stood at -38.6%.
Operating margins expanded to 0.17% for period ended TTM vis-vis -66.67% for period ended Mar 2021, expansion of 6684.0 bps.
Net Profit reported at Rs 0.33 cr for period ended TTM vis-vis sales of Rs 0.01 cr for the period ended Mar 2021, rising 97.0%.
Company recorded a healthy Net Profit CAGR of 60.4% over the last 3 years
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 25% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of -74% over the last 3 Years. – The compounded profit growth on a TTM basis is 409% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 35.21% vis-vis 35.21% for Jun 2021
Conclusion
– – Stock is trading at 6.84 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.05% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 4075.83 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 29.67 and is trading at 38.9 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
