Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 3 and Piotski score of 4.
Description
MIC Electronics is a global leader in the design, development & manufacturing of LED Video Displays, high-end Electronic and Telecommunication equipment and development of Telecom software since 1988. Site:MIC Main Symbol:MIC
Stock trades at 27.4, above its 50dma 1.03. It also trades above its 200dma 0.86. The stock remains bullish on techicals
The 52 week high is at 1.52 and the 52week low is at 0.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -64.97% over past five years.
-Earnings include an other income of Rs.3.14 Cr.
– has high debtors of 1326.06 days.
Competition
– The industry trades at a mean P/E of 42.8x. Amber Enterp. trades at the industry’s max P/E of 91.21x. MIC trades at a P/E of x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 7.0. MIC has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 19.9%. The max 1- month return was given by Hind Rectifiers: a return of 56.51 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.01 cr compared to Rs 0.2 cr for period ended Mar 2020, a fall of 95.0%
Company reported operating profit of Rs 1.68 cr for period ended Mar 2021, operating profit margin at 16800.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.1 compared to Rs -0.1 for previous quarter ended Dec 2020 and Rs -0.73 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.09 cr for period ended Mar 2021 vis-vis sales of Rs 1.86 cr for the period ended Mar 2020, a fall of 70.6%. The 3 year sales cagr stood at -81.0%.
Operating margins expanded to -105.5% for period ended Mar 2021 vis-vis -918.82% for period ended Mar 2020, expansion of 81332.0 bps.
Net Profit reported at Rs -5.42 cr for period ended Mar 2021 vis-vis sales of Rs -23.95 cr for the period ended Mar 2020, rising 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 2283% on a 1 Year basis vis-vis a return of 173% over the last 3 Years. – The compounded sales growth on a TTM bassis is -41% vis-vis a compounded sales growth of -81% over the last 3 Years. – The compounded profit growth on a TTM basis is 77% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 100.0% vis-vis 100.0% for Sep 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -64.97% over past five years.
-Earnings include an other income of Rs.3.14 Cr.
– has high debtors of 1326.06 days.
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 1.03 and is trading at 27.4 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
