Mehabe score: 6 G Factor: 3 Piotski Score: 7 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 7.
Description
Calcom Vision is engaged in the business of Electronic products. It is a fully integrated lighting solution manufacturer (having a comprehensive range of LED products and drivers), with In-House Plastic Injection Moulding, Approbation Lab, Tool Room and Wire Wound Components manufacturing. Site:CALCOM Main Symbol:CALCOM
Stock trades at 141.0, above its 50dma 126.47. It also trades above its 200dma 72.56. The stock remains bullish on techicals
The 52 week high is at 192.05 and the 52week low is at 17.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 3.64 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 10.43% for last 3 years.
-Debtor days have increased from 52.81 to 80.94 days.
Competition
– The industry trades at a mean P/E of 126.6x. MIRC Electronics trades at the industry’s max P/E of 196.34x. CALCOM trades at a P/E of 163.0x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 7.0. CALCOM has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -3.1%. The max 1- month return was given by KCD Industries: a return of 4.9 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 30.3 cr compared to Rs 17.75 cr for period ended Dec 2020, a rise of 70.7% .
vis-vis 1.2 for period ended Dec 2020 .
Operating Margins contracted -352.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.98 cr for period ended Dec 2021 and operating profit margin at 3.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs -0.15 compared to Rs 0.54 for previous quarter ended Sep 2021 and Rs 0.48 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 84.14 cr for period ended TTM vis-vis sales of Rs 57.68 cr for the period ended Mar 2021, a healthy growth of 31.4%. The 3 year sales cagr stood at 17.2%.
Operating margins shrank to 5.73% for period ended TTM vis-vis 6.1% for period ended Mar 2021, contraction of 37.0 bps.
Net Profit reported at Rs 0.92 cr for period ended TTM vis-vis sales of Rs 0.76 cr for the period ended Mar 2021, rising 17.4%.
Company reported a poor Net Profit CAGR of -32.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.1 cr for period ended Mar 2021 vis-vis Rs -2.77 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 414% on a 1 Year basis vis-vis a return of 62% over the last 3 Years. – The compounded sales growth on a TTM bassis is 94% vis-vis a compounded sales growth of 32% over the last 3 Years. – The compounded profit growth on a TTM basis is 197% vis-vis a compounded profit growth of -7% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.44% vis-vis 25.44% for Sep 2021
Conclusion
– is expected to give good quarter – Stock is trading at 3.64 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 10.43% for last 3 years.
-Debtor days have increased from 52.81 to 80.94 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 126.47 and is trading at 141.0 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
