Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
Spring Fields Infraventures is engaged in Wholesale trade services.Site:540570Main Symbol:VARIMAN
Stock trades at 29.4, below its 50dma 38.92 and below its 200dma 31.71. The stock remains bearish on technicals
The 52 week high is at 44.40 and the 52week low is at 11.65
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.06 times its book value
-Promoter holding has decreased over last quarter: -0.65%
-Promoter holding is low: 32.92%
– has a low return on equity of 5.10% for last 3 years.
-Earnings include an other income of Rs.2.50 Cr.
Competition
– The industry trades at a mean P/E of 35.0x. National Standar trades at the industry’s max P/E of 1628.68x. 540570 trades at a P/E of 68.4x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 540570 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 17.4%. The max 1- month return was given by National Standar: a return of 152.68 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 5.37 cr compared to Rs 14.06 cr for period ended Sep 2020, a fall of 61.8%
Company reported negative operating profit of Rs -0.17 cr for period ended Sep 2021. For same period last year, operating profit was 0.16
The EPS for Sep 2021 was Rs -0.24 compared to Rs 0.14 for previous quarter ended Jun 2021 and Rs 0.2 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 56.79 cr for period ended TTM vis-vis sales of Rs 58.8 cr for the period ended Mar 2021, a fall of 3.5%. The 3 year sales cagr stood at 4.6%.
Operating margins shrank to 1.04% for period ended TTM vis-vis 1.97% for period ended Mar 2021, contraction of 93.0 bps.
Net Profit reported at Rs 0.15 cr for period ended TTM vis-vis sales of Rs 0.96 cr for the period ended Mar 2021, falling 540.0%.
Company reported a poor Net Profit CAGR of -34.3% 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 0.05 cr for period ended Mar 2021 vis-vis Rs 0.0 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 6.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 81% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 359% over the last 3 Years. – The compounded profit growth on a TTM basis is -72% 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 65.59% vis-vis 64.93% for Jun 2021
Conclusion
– – Stock is trading at 3.06 times its book value
-Promoter holding has decreased over last quarter: -0.65%
-Promoter holding is low: 32.92%
– has a low return on equity of 5.10% for last 3 years.
-Earnings include an other income of Rs.2.50 Cr.
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 38.92 and is trading at 29.4. 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
