Mehabe score: 4 G Factor: 0 Piotski Score: 7 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 0 and Piotski score of 7.
Description
Gayatri Tissue & Papers is engaged in execution of Civil Works like Concrete/Masonry Dams, Earth Filling Dams, National Highways, Bridges, Construction of Buildings etc.Site:512479Main Symbol:GYTRIPA
Stock trades at 87.2, above its 50dma 71.32. It also trades above its 200dma 57.45. The stock remains bullish on techicals
The 52 week high is at 87.15 and the 52week low is at 80.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 3.13 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -37.22% over past five years.
– has a low return on equity of 2.11% for last 3 years.
– has high debtors of 823.86 days.
Competition
– The industry trades at a mean P/E of 37.0x. National Standar trades at the industry’s max P/E of 822.62x. 512479 trades at a P/E of 654.0x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 512479 has a G-Factor of 0 and Piotski scoreof 7.
– Average 1 month return for industry is 14.7%. The max 1- month return was given by National Standar: a return of 77.79 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.07 cr compared to Rs 0.1 cr for period ended Sep 2020, a fall of 30.0%
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.32 cr for period ended TTM vis-vis sales of Rs 0.35 cr for the period ended Mar 2021, a fall of 9.4%. The 3 year sales cagr stood at -49.0%.
Operating margins shrank to 6.25% for period ended TTM vis-vis 8.57% for period ended Mar 2021, contraction of 232.0 bps.
Net Profit reported at Rs 0.01 cr for period ended TTM vis-vis sales of Rs 0.02 cr for the period ended Mar 2021, falling 100.0%.
Company reported a poor Net Profit CAGR of -64.3% 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 0.01 cr for period ended Mar 2021 vis-vis Rs 0.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 4% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -30% vis-vis a compounded sales growth of -46% over the last 3 Years. – The compounded profit growth on a TTM basis is 0% vis-vis a compounded profit growth of -37% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.02% vis-vis 25.02% for Jun 2021
Conclusion
– is almost debt free. – Stock is trading at 3.13 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -37.22% over past five years.
– has a low return on equity of 2.11% for last 3 years.
– has high debtors of 823.86 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 71.32 and is trading at 87.2 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
