Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
Kallam Textiles is engaged in the business of Manufacturing of Cotton Yarn, Dyed Yarn, Grey Fabric and Dyed Fabric.Site:530201Main Symbol:KALLAM
Stock trades at 20.2, above its 50dma 16.58. It also trades above its 200dma 13.6. The stock remains bullish on techicals
The 52 week high is at 24.97 and the 52week low is at 6.46
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.43 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 -2.22% over past five years.
– has a low return on equity of -2.12% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 10.6x. Arvind Ltd trades at the industry’s max P/E of 25.34x. 530201 trades at a P/E of 10.4x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. 530201 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 14.6%. The max 1- month return was given by Arvind Ltd: a return of 36.34 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 112.29 cr compared to Rs 44.11 cr for period ended Sep 2020, a rise of 154.6%
Operating Profits reported at Rs 19.72 cr for period ended Sep 2021 vis-vis 7.06 for period ended Sep 2020 .
Operating Margins expanded 155.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.35 compared to Rs 0.73 for previous quarter ended Jun 2021 and Rs -0.46 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 372.0 cr for period ended TTM vis-vis sales of Rs 241.0 cr for the period ended Mar 2021, a healthy growth of 35.2%. The 3 year sales cagr stood at 6.2%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs -8.0 cr for the period ended Mar 2021, rising 180.0%.
Company recorded a healthy Net Profit CAGR of 12.6% 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 stock has given a return of 150% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of -8% over the last 3 Years. – The compounded profit growth on a TTM basis is 132% 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 47.18% vis-vis 46.49% for Jun 2021
Conclusion
– Stock is trading at 0.43 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.22% over past five years.
– has a low return on equity of -2.12% for last 3 years.
– might be capitalizing the interest cost
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 above its 50 DMA 16.58 and is trading at 20.2, thus bullish price action wise.
