Mehabe score: 5 G Factor: 1 Piotski Score: 3 The stock has a rating OBSERVE & 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 1 and Piotski score of 3.
Description
Ventura Textiles is engaged mainly in the business of manufacturing of Textiles consisting of Fabric and Yarn.Site:516098Main Symbol:VENTURA
Stock trades at 7.79, above its 50dma 5.37. It also trades above its 200dma 4.68. The stock remains bullish on techicals
The 52 week high is at 9.08 and the 52week low is at 1.89
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-Debtor days have increased from 111.95 to 146.45 days.
-Promoter holding has decreased over last 3 years: -3.60%
Competition
– The industry trades at a mean P/E of 11.3x. Alok Industries trades at the industry’s max P/E of 109.73x. 516098 trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. 516098 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 18.0%. The max 1- month return was given by Raghuvir Synth: a return of 152.28 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 3.39 cr compared to Rs 0.13 cr for period ended Sep 2020, a rise of 2507.7%
Company reported negative operating profit of Rs -1.0 cr for period ended Sep 2021. For same period last year, operating profit was -0.61
The EPS for Sep 2021 was Rs -0.78 compared to Rs -0.43 for previous quarter ended Jun 2021 and Rs -0.3 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 9.77 cr for period ended TTM vis-vis sales of Rs 1.62 cr for the period ended Mar 2021, a healthy growth of 83.4%. The 3 year sales cagr stood at 96.4%.
Operating margins expanded to -28.56% for period ended TTM vis-vis -146.3% for period ended Mar 2021, expansion of 11774.0 bps.
Net Profit reported at Rs -6.23 cr for period ended TTM vis-vis sales of Rs -4.96 cr for the period ended Mar 2021, falling 0%.
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 123% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 210% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% 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 38.1% vis-vis 38.1% for Jun 2021
Conclusion
– – has low interest coverage ratio.
-Debtor days have increased from 111.95 to 146.45 days.
-Promoter holding has decreased over last 3 years: -3.60%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 5.37 and is trading at 7.79 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
