Mehabe score: 4 G Factor: 4 Piotski Score: 6 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 6.
Description
Inani Marbles & Industries is engaged in the Business of manufacturing, processing and trading of Granite, Stone and Marble Blocks, Slabs and Tiles.Site:531129Main Symbol:INANI
Stock trades at 20.8, below its 50dma 23.08. However it is trading above its 200dma 20.14. 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 23.08.
The 52 week high is at 36.80 and the 52week low is at 10.51
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.81 times its book value
– is expected to give good quarter
-Debtor days have improved from 181.59 to 112.16 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.40% over past five years.
– has a low return on equity of 1.76% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.5x. Affle India trades at the industry’s max P/E of 93.66x. 531129 trades at a P/E of 25.4x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. 531129 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 13.6%. The max 1- month return was given by Netwrk.18 Media: a return of 59.85 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 20.99 cr compared to Rs 16.4 cr for period ended Sep 2020, a rise of 28.0%
Operating Profits reported at Rs 2.08 cr for period ended Sep 2021 vis-vis 1.65 for period ended Sep 2020 .
Operating Margins contracted -15.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.76 compared to Rs 0.19 for previous quarter ended Jun 2021 and Rs 0.31 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 72.25 cr for period ended TTM vis-vis sales of Rs 60.53 cr for the period ended Mar 2021, a healthy growth of 16.2%. The 3 year sales cagr stood at 25.5%.
Operating margins shrank to 9.83% for period ended TTM vis-vis 11.53% for period ended Mar 2021, contraction of 170.0 bps.
Net Profit reported at Rs 2.44 cr for period ended TTM vis-vis sales of Rs 1.52 cr for the period ended Mar 2021, rising 37.7%.
Company recorded a healthy Net Profit CAGR of 41.6% over the last 3 years
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 44% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 106% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 7550% vis-vis a compounded profit growth of 59% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 34.62% vis-vis 34.62% for Jun 2021
Conclusion
– Stock is trading at 0.81 times its book value
– is expected to give good quarter
-Debtor days have improved from 181.59 to 112.16 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.40% over past five years.
– has a low return on equity of 1.76% for last 3 years.
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 23.08 and is trading at 20.8. Shows a near term lack of buying interest.
