Mehabe score: 3 G Factor: 4 Piotski Score: 7 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 4 and Piotski score of 7.
Description
Magnum Ventures is engaged in the business of trading and manufacturing of paper for more than 30 years. The existing manufacturing activities cover Newspaper printing paper and duplex boards.Site:MAGNUMMain Symbol:MAGNUM
Stock trades at 7.3, below its 50dma 8.18. However it is trading above its 200dma 6.85. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 8.18.
The 52 week high is at 12.48 and the 52week low is at 3.89
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -5.06% over past five years.
-Promoters have pledged 70.00% of their holding.
-Debtor days have increased from 92.67 to 125.71 days.
Competition
– The industry trades at a mean P/E of 13.0x. Century Textiles trades at the industry’s max P/E of 98.46x. MAGNUM trades at a P/E of 3.52x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 7.0. MAGNUM has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -3.3%. The max 1- month return was given by T N Newsprint: a return of 2.31 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 73.44 cr compared to Rs 36.47 cr for period ended Sep 2020, a rise of 101.4%
Company reported operating profit of Rs 4.61 cr for period ended Sep 2021, operating profit margin at 6.3 %.
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 0.21 compared to Rs -0.19 for previous quarter ended Jun 2021 and Rs -0.38 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 261.0 cr for period ended TTM vis-vis sales of Rs 176.0 cr for the period ended Mar 2021, a healthy growth of 32.6%. The 3 year sales cagr stood at -2.0%.
Operating margins expanded to 10.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 0%.
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 60% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 155% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 46.92% vis-vis 46.92% for Jun 2021
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of -5.06% over past five years.
-Promoters have pledged 70.00% of their holding.
-Debtor days have increased from 92.67 to 125.71 days.
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 below its 50 DMA 8.18 and is trading at 7.3. Shows a near term lack of buying interest.
