Mehabe score: 6 G Factor: 3 Piotski Score: 5 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 5.
Description
The Co. has a presence in residential real estate development from Affordable to Premium & Uber-luxury space. It mainly focuses on the construction and development of residential, commercial and SEZ projects across the Indian metro cities. Geographically, the Company’s strategic focus is in key markets of MMR and NCR Region.Site:IBREALESTMain Symbol:IBREALEST
Stock trades at 164.0, above its 50dma 140.57. It also trades above its 200dma 111.94. The stock remains bullish on techicals
The 52 week high is at 174.80 and the 52week low is at 46.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -12.46% over past five years.
-Promoter holding is low: 11.99%
– has a low return on equity of 6.05% for last 3 years.
-Debtor days have increased from 33.62 to 72.02 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -26.60%
Competition
– The industry trades at a mean P/E of 30.9x. Phoenix Mills trades at the industry’s max P/E of 244.35x. IBREALEST trades at a P/E of 40.3x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. IBREALEST has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 23.3%. The max 1- month return was given by Godrej Propert.: a return of 53.24 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 349.32 cr compared to Rs 20.15 cr for period ended Sep 2020, a rise of 1633.6%
Company reported operating profit of Rs 22.43 cr for period ended Sep 2021, operating profit margin at 6.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.12 compared to Rs 0.1 for previous quarter ended Jun 2021 and Rs -1.67 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2322.0 cr for period ended TTM vis-vis sales of Rs 1521.0 cr for the period ended Mar 2021, a healthy growth of 34.5%. The 3 year sales cagr stood at -22.3%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 185.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 97.8%.
Company reported a poor Net Profit CAGR of -28.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 853.0 cr for period ended Mar 2021 vis-vis Rs -432.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 0.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 243% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is 64% vis-vis a compounded sales growth of -30% over the last 3 Years. – The compounded profit growth on a TTM basis is 180% vis-vis a compounded profit growth of -88% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 16.58% vis-vis 15.9% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 69.24% vis-vis 69.63% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -12.46% over past five years.
-Promoter holding is low: 11.99%
– has a low return on equity of 6.05% for last 3 years.
-Debtor days have increased from 33.62 to 72.02 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -26.60%
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 140.57 and is trading at 164.0 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
