Mehabe score: 2 G Factor: 1 Piotski Score: 4 The stock has a rating SELL. 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 1 and Piotski score of 4.
Description
Svaraj Trading & Agencies is engaged in the diverse range of products and services including company is in to Trading and Agencies Business and Allied Activities business. (Source : 201903 Annual Report Page No: 74)Site:503624Main Symbol:ZSVARAJT
Stock trades at 10.3, below its 50dma 10.41 and below its 200dma 12.47. The stock remains bearish on technicals
The 52 week high is at 18.59 and the 52week low is at 3.86
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.28 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -38.04% over past five years.
-Promoter holding is low: 7.87%
– has a low return on equity of 1.92% for last 3 years.
-Earnings include an other income of Rs.0.78 Cr.
– has high debtors of 323.11 days.
Competition
– The industry trades at a mean P/E of 41.4x. Adani Enterp. trades at the industry’s max P/E of 158.86x. 503624 trades at a P/E of 17.5x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 503624 has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is -8.0%. The max 1- month return was given by Adani Enterp.: a return of 7.11 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.29 cr compared to Rs 0.16 cr for period ended Sep 2020, a rise of 81.2%
Operating Profits reported at Rs 0.22 cr for period ended Sep 2021 vis-vis 0.07 for period ended Sep 2020 .
Operating Margins expanded 3211.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.27 compared to Rs 0.11 for previous quarter ended Jun 2021 and Rs 0.21 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.71 cr for period ended TTM vis-vis sales of Rs 0.61 cr for the period ended Mar 2021, a healthy growth of 14.1%. The 3 year sales cagr stood at -17.4%.
Operating margins expanded to 49.3% for period ended TTM vis-vis 34.43% for period ended Mar 2021, expansion of 1487.0 bps.
Net Profit reported at Rs 0.87 cr for period ended TTM vis-vis sales of Rs 0.75 cr for the period ended Mar 2021, rising 13.8%.
Company reported a poor Net Profit CAGR of -12.5% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 29% on a 1 Year basis vis-vis a return of -62% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of -15% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 92.13% vis-vis 92.13% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.28 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -38.04% over past five years.
-Promoter holding is low: 7.87%
– has a low return on equity of 1.92% for last 3 years.
-Earnings include an other income of Rs.0.78 Cr.
– has high debtors of 323.11 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 10.41 and is trading at 10.3. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
