Investment Memo: 539620

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Our Rating:

Mehabe score: 2
G Factor: 5
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 5 and Piotski score of 8.

Description

A Infrastructure Ltd is into manufacturing of products ranging from Asbestos Cement Pressure Pipes & Asbestos Cement Sheets. It was incorporated in August 1980. [1]Site: 539620Main Symbol: AINFRA

Price Chart

Market Cap: Rs 128 cr Price: 30.0 Trading pe: 19.8x
Book-value: 14.4/share Div yield: 0.33 % Earning yield: 8.72%
Face-value: 5.00/share 52week high: 36.85 52week low: 18.95

Technical Analysis

  • Stock trades at 30.0, below its 50dma 31.41. However it is trading above its 200dma 28.0. 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 31.41.
  • The 52 week high is at 36.85 and the 52week low is at 18.95

Price Chart

P/E Chart

Sales and Margin

Strengths

– has delivered good profit growth of 146.57% CAGR over last 5 years

Weakness

– The company has delivered a poor sales growth of 7.24% over past five years.
– has a low return on equity of 9.14% for last 3 years.

Competition

– The industry trades at a mean P/E of 16.3x. BIGBLOC Const. trades at the industry’s max P/E of 23.58x. 539620 trades at a P/E of 19.8x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. 539620 has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is -5.9%. The max 1- month return was given by BIGBLOC Const.: a return of 14.42 %

Quarterly Results

  • Sales for period ended Sep 2021 is Rs 55.71 cr compared to Rs 61.53 cr for period ended Sep 2020, a fall of 9.5%
  • Operating Profits reported at Rs 2.57 cr for period ended Sep 2021 vis-vis 2.75 for period ended Sep 2020 .
  • Operating Margins expanded 14.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
  • The EPS for Sep 2021 was Rs -0.12 compared to Rs 1.13 for previous quarter ended Jun 2021 and Rs 0.01 for Sep 2020

Profit & Loss Statement

Profit&Loss Comments

  • Company reported sales of Rs 274.0 cr for period ended TTM vis-vis sales of Rs 268.0 cr for the period ended Mar 2021, a growth of 2.2%. The 3 year sales cagr stood at 2.4%.
  • Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021,
  • Company reported a poor Net Profit CAGR of -9.1% 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 28.0 cr for period ended Mar 2021 vis-vis Rs 11.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 9.0% over the last 3 Years.
– The stock has given a return of 14% 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 12% vis-vis a compounded sales growth of 9% over the last 3 Years.
– The compounded profit growth on a TTM basis is 200% vis-vis a compounded profit growth of 98% over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 26.05% vis-vis 26.05% for Jun 2021

Conclusion

– has delivered good profit growth of 146.57% CAGR over last 5 years – The company has delivered a poor sales growth of 7.24% over past five years.
– has a low return on equity of 9.14% for last 3 years.

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