Mehabe score: 2 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
Urja Global is primarily engaged in the business of Design, Consultancy, integration, supply, installation, commissioning & maintenance of off-grid and grid-connected Solar Power Plants and decentralized Solar Applications. Site:URJAGLOBA Main Symbol:URJAGLOBA
Stock trades at 33.4, above its 50dma 16.77. It also trades above its 200dma 9.88. The stock remains bullish on techicals
The 52 week high is at 34.85 and the 52week low is at 5.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 11.44 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.02% over past five years.
-Promoter holding is low: 31.97%
– has a low return on equity of 0.62% for last 3 years.
-Earnings include an other income of Rs.3.28 Cr.
– has high debtors of 889.59 days.
Competition
– The industry trades at a mean P/E of 43.2x. Urja Global trades at the industry’s max P/E of 787.94x. URJAGLOBA trades at a P/E of 788.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. URJAGLOBA has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 26.4%. The max 1- month return was given by Urja Global: a return of 170.45 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 24.95 cr compared to Rs 38.73 cr for period ended Dec 2020, a fall of 35.6%
.
vis-vis 0.1 for period ended Dec 2020 .
Operating Margins expanded 206.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.58 cr for period ended Dec 2021 and operating profit margin at 2.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.01 compared to Rs 0.0 for previous quarter ended Sep 2021 and Rs 0.01 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 118.0 cr for period ended TTM vis-vis sales of Rs 148.0 cr for the period ended Mar 2021, a fall of 25.4%. The 3 year sales cagr stood at -4.6%.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 2.0 cr for the period ended Mar 2021,
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 302% on a 1 Year basis vis-vis a return of 116% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of 59% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.43% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 68.01% vis-vis 67.58% for Jun 2021
Conclusion
– is almost debt free. – Stock is trading at 11.44 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.02% over past five years.
-Promoter holding is low: 31.97%
– has a low return on equity of 0.62% for last 3 years.
-Earnings include an other income of Rs.3.28 Cr.
– has high debtors of 889.59 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 16.77 and is trading at 33.4 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
