Mehabe score: 2 G Factor: 3 Piotski Score: 1 The stock has a rating SELL. 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 1.
Description
Rudra Global Infra Products Ltd was started in 1991 with a steel re-rolling mill in Gujarat having a capacity of 1000 MT per month. Today, it is engaged in various businesses like Ship recycling, oxygen plant, Induction Furnace, Re-rolling mill, producing more than 3 Lakh MT per annum of steel. [1] [2]Site:539226Main Symbol:RUDRA
Stock trades at 27.4, below its 50dma 31.47 and below its 200dma 45.37. The stock remains bearish on technicals
The 52 week high is at 113.20 and the 52week low is at 25.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.98 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.20% over past five years.
– has a low return on equity of -4.93% for last 3 years.
-Contingent liabilities of Rs.88.00 Cr.
-Debtor days have increased from 56.26 to 108.44 days.
Competition
– The industry trades at a mean P/E of 14.4x. Ratnamani Metals trades at the industry’s max P/E of 37.26x. 539226 trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 9.0. 539226 has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Mah. Seamless: a return of 58.39 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 91.44 cr compared to Rs 56.69 cr for period ended Sep 2020, a rise of 61.3%
Company reported operating profit of Rs 8.05 cr for period ended Sep 2021, operating profit margin at 8.8 %.
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 0.84 compared to Rs 0.76 for previous quarter ended Jun 2021 and Rs -4.66 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 302.0 cr for period ended TTM vis-vis sales of Rs 238.0 cr for the period ended Mar 2021, a healthy growth of 21.2%. The 3 year sales cagr stood at -18.5%.
Operating margins expanded to 12.0% for period ended TTM vis-vis -3.0% for period ended Mar 2021, expansion of 1500.0 bps.
Net Profit reported at Rs 9.0 cr for period ended TTM vis-vis sales of Rs -30.0 cr for the period ended Mar 2021, rising 433.3%.
Company reported a poor Net Profit CAGR of -17.5% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -33.0% compared to -5.0% over the last 3 Years. – The stock has given a return of -71% on a 1 Year basis vis-vis a return of -49% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is 89% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 27.12% vis-vis 27.12% for Jun 2021
Conclusion
– Stock is trading at 0.98 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.20% over past five years.
– has a low return on equity of -4.93% for last 3 years.
-Contingent liabilities of Rs.88.00 Cr.
-Debtor days have increased from 56.26 to 108.44 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 31.47 and is trading at 27.4. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
