Mehabe score: 2 G Factor: 3 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 3 and Piotski score of 7.
Description
G G Dandekar Machine Works Ltd is engaged in the manufacturing of “Food Processing Machineries”. It manufactures Machinery for Rice Milling, Dal milling, Spices grinding etc. It is the largest manufacturer of machinery for Rice Milling in India. It has an integrated manufacturing facility under one roof at Nagpur. [1] [2]Site:505250Main Symbol:GGDANDE
Stock trades at 74.5, above its 50dma 51.43. It also trades above its 200dma 50.24. The stock remains bullish on techicals
The 52 week high is at 62.50 and the 52week low is at 39.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.88 times its book value
Weakness
– has low interest coverage ratio.
Competition
– The industry trades at a mean P/E of 20.7x. G G Dandekar trades at the industry’s max P/E of 709.4x. 505250 trades at a P/E of 709.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. 505250 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 7.4%. The max 1- month return was given by G G Dandekar: a return of 30.59 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.37 cr compared to Rs 1.59 cr for period ended Sep 2020, a fall of 76.7%
Company reported negative operating profit of Rs -0.62 cr for period ended Sep 2021. For same period last year, operating profit was 0.15
The EPS for Sep 2021 was Rs -1.53 compared to Rs -0.67 for previous quarter ended Jun 2021 and Rs 0.36 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.74 cr for period ended TTM vis-vis sales of Rs 4.57 cr for the period ended Mar 2021, a fall of 22.2%. The 3 year sales cagr stood at -7.8%.
Operating margins shrank to -56.42% for period ended TTM vis-vis -27.57% for period ended Mar 2021, contraction of 2885.0 bps.
Net Profit reported at Rs -0.85 cr for period ended TTM vis-vis sales of Rs 0.08 cr for the period ended Mar 2021, falling 0%.
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 stock has given a return of 77% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 102% 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 36.95% vis-vis 36.95% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.88 times its book value – has low interest coverage ratio.
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 51.43 and is trading at 74.5 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
