Mehabe score: 2 G Factor: 1 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 1 and Piotski score of 6.
Description
Zeal Aqua is a leading Aquaculture company and is one of the largest producers of shrimp in Gujarat: having Shrimp Harvesting & Trading Unit and Aquaculture Processing Unit.Site:539963Main Symbol:ZEAL
Stock trades at 7.64, below its 50dma 104.37 and below its 200dma 92.42. The stock remains bearish on technicals
The 52 week high is at 165.00 and the 52week low is at 52.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 11.22% for last 3 years.
Competition
– The industry trades at a mean P/E of 29.1x. Waterbase trades at the industry’s max P/E of 105.2x. 539963 trades at a P/E of 39.3x
– Industry’s mean G-Factor is 1.9 while the mean Piotski score is 8.0. 539963 has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is -2.9%. The max 1- month return was given by Sharat Industrie: a return of 20.45 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 85.89 cr compared to Rs 77.84 cr for period ended Sep 2020, a rise of 10.3%
Operating Profits reported at Rs 7.12 cr for period ended Sep 2021 vis-vis 4.19 for period ended Sep 2020 .
Operating Margins expanded 290.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.28 compared to Rs 0.04 for previous quarter ended Jun 2021 and Rs 0.1 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 310.0 cr for period ended TTM vis-vis sales of Rs 296.0 cr for the period ended Mar 2021, a growth of 4.5%. The 3 year sales cagr stood at 10.1%.
Net Profit reported at Rs 5.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 20.0%.
Company reported a poor Net Profit CAGR of -14.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 21% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 19% over the last 3 Years. – The compounded profit growth on a TTM basis is -63% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 31.58% vis-vis 31.58% for Jun 2021
Conclusion
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 11.22% for last 3 years.
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 104.37 and is trading at 7.64. 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
