Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Incorporated in 2011, Shyam Century Ferrous Limited is engaged in manufacturing Ferro Alloys like Ferro Silicon mainly in North-Eastern India. This business was transferred from Star Ferro and Cement Limited as a part of a demerger scheme in 2014. [1]
Co. is promoted by Mr. Sajjan Bhajanka & Mr. Sanjay Agarwal who are also the promoters of Century Plyboards Ltd. & Star Cement Ltd.Site:SHYAMCENTMain Symbol:SCFL
Stock trades at 12.2, below its 50dma 12.29. However it is trading above its 200dma 9.43. 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 12.29.
The 52 week high is at 20.45 and the 52week low is at 3.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 79.61% CAGR over last 5 years
-Debtor days have improved from 100.13 to 63.15 days.
Weakness
– The company has delivered a poor sales growth of 2.35% over past five years.
– has a low return on equity of 8.91% for last 3 years.
Competition
– The industry trades at a mean P/E of 19.0x. KIOCL trades at the industry’s max P/E of 31.52x. SHYAMCENT trades at a P/E of 10.5x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 9.0. SHYAMCENT has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is -2.9%. The max 1- month return was given by Vedanta: a return of 6.35 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 52.0 cr compared to Rs 35.0 cr for period ended Sep 2020, a rise of 48.6%
Operating Profits reported at Rs 16.0 cr for period ended Sep 2021 vis-vis 2.0 for period ended Sep 2020 .
Operating Margins expanded 2505.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.56 compared to Rs 0.37 for previous quarter ended Jun 2021 and Rs 0.06 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 165.0 cr for period ended TTM vis-vis sales of Rs 128.0 cr for the period ended Mar 2021, a healthy growth of 22.4%. The 3 year sales cagr stood at 7.5%.
Operating margins expanded to 20.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 1000.0 bps.
Net Profit reported at Rs 20.0 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, rising 85.0%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 18.0 cr for period ended Mar 2021 vis-vis Rs -8.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 17.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 221% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 62% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 525% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 45.51% vis-vis 45.51% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 79.61% CAGR over last 5 years
-Debtor days have improved from 100.13 to 63.15 days. – The company has delivered a poor sales growth of 2.35% over past five years.
– has a low return on equity of 8.91% for last 3 years.
