Mehabe score: 6 G Factor: 2 Piotski Score: 5 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 2 and Piotski score of 5.
Description
Alfavision Overseas (India) is engaged in the business of Cotton Trading and cultivation and herbal medicine.Site:531156Main Symbol:ALFAVIO
Stock trades at 72.2, above its 50dma 40.23. It also trades above its 200dma 44.5. The stock remains bullish on techicals
The 52 week high is at 48.55 and the 52week low is at 24.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Promoter holding is low: 24.80%
– has a low return on equity of 5.84% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.3x. Affle India trades at the industry’s max P/E of 92.7x. 531156 trades at a P/E of 10.6x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. 531156 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 8.2%. The max 1- month return was given by Century Plyboard: a return of 31.72 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 25.71 cr compared to Rs 24.19 cr for period ended Sep 2020, a rise of 6.3%
Company reported operating profit of Rs 0.35 cr for period ended Sep 2021, operating profit margin at 1.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.63 compared to Rs 0.76 for previous quarter ended Jun 2021 and Rs 0.1 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 79.39 cr for period ended TTM vis-vis sales of Rs 82.55 cr for the period ended Mar 2021, a fall of 4.0%. The 3 year sales cagr stood at 19.0%.
Operating margins expanded to 3.05% for period ended TTM vis-vis 2.0% for period ended Mar 2021, expansion of 105.0 bps.
Net Profit reported at Rs 2.14 cr for period ended TTM vis-vis sales of Rs 1.34 cr for the period ended Mar 2021, rising 37.4%.
Company recorded a healthy Net Profit CAGR of 229.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -1.02 cr for period ended Mar 2021 vis-vis Rs -16.17 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 183% on a 1 Year basis vis-vis a return of 28% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of 30% over the last 3 Years. – The compounded profit growth on a TTM basis is 415% vis-vis a compounded profit growth of 222% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 75.2% vis-vis 75.2% for Jun 2021
Conclusion
– is expected to give good quarter – Promoter holding is low: 24.80%
– has a low return on equity of 5.84% for last 3 years.
– might be capitalizing the interest cost
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 40.23 and is trading at 72.2 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
