Mehabe score: 7 G Factor: 1 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 1 and Piotski score of 5.
Description
Suraj Industries is yet not engaged in any manufacturing business but is in the process of re-commencing its business activities. Site:526211 Main Symbol:SURJIND
Stock trades at 126.0, above its 50dma 101.22. It also trades above its 200dma 40.86. The stock remains bullish on techicals
The 52 week high is at 180.60 and the 52week low is at 1.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 65.03 times its book value
– might be capitalizing the interest cost
– has high debtors of 162.92 days.
Competition
– The industry trades at a mean P/E of 43.2x. Manorama Indust. trades at the industry’s max P/E of 127.81x. 526211 trades at a P/E of 80.9x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 526211 has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 9.2%. The max 1- month return was given by Suraj Industries: a return of 33.02 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 12.25 cr compared to Rs 0.07 cr for period ended Dec 2020, a rise of 17400.0% .
.
Company reported operating profit of Rs 1.57 cr for period ended Dec 2021 and operating profit margin at 12.8 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Dec 2021 is Rs 1.57 compared to Rs 0.95 for previous quarter ended Sep 2021 and Rs -0.11 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 36.67 cr for period ended TTM vis-vis sales of Rs 6.99 cr for the period ended Mar 2021, a healthy growth of 80.9%. The 3 year sales cagr stood at 250.7%.
Operating margins expanded to 7.77% for period ended TTM vis-vis 1.43% for period ended Mar 2021, expansion of 634.0 bps.
Net Profit reported at Rs 2.79 cr for period ended TTM vis-vis sales of Rs 0.37 cr for the period ended Mar 2021, rising 86.7%.
Company recorded a healthy Net Profit CAGR of 117.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -0.11 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 6377% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 2478% vis-vis a compounded sales growth of 515% over the last 3 Years. – The compounded profit growth on a TTM basis is 619% vis-vis a compounded profit growth of 72% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 50.19% vis-vis 50.19% for Jun 2021
Conclusion
– is expected to give good quarter – Stock is trading at 65.03 times its book value
– might be capitalizing the interest cost
– has high debtors of 162.92 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 101.22 and is trading at 126.0 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
