Mehabe score: 6 G Factor: 2 Piotski Score: 7 The stock has a rating SELL. 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 7.
Description
IRIS Clothings Limited, incorporated in 1956, is engaged in designing, manufacturing, branding and selling garments for kids. [1]Iris Clothings Limited is a fast-growing readymade garment company and is engaged in designing, manufacturing, branding and selling garments for kids wear under the brand name DOREME in India. It produces a broad range of unique apparels for infants, toddlers and junior boys and girls. Site:IRISDOREME Main Symbol:IRISDOREME
Stock trades at 198.0, below its 50dma 204.24. However it is trading above its 200dma 169.69. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 204.24.
The 52 week high is at 239.00 and the 52week low is at 55.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 7.33 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 30.5x. Jindal Worldwide trades at the industry’s max P/E of 76.34x. IRISDOREME trades at a P/E of 34.5x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 9.0. IRISDOREME has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 7.0%. The max 1- month return was given by Jindal Worldwide: a return of 47.24 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 25.04 cr compared to Rs 28.15 cr for period ended Dec 2020, a fall of 11.0%
.
vis-vis 4.75 for period ended Dec 2020 .
Operating Margins expanded 389.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 5.2 cr for period ended Dec 2021 and operating profit margin at 20.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.46 compared to Rs 2.14 for previous quarter ended Sep 2021 and Rs 1.22 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 108.0 cr for period ended TTM vis-vis sales of Rs 87.0 cr for the period ended Mar 2021, a healthy growth of 19.4%. The 3 year sales cagr stood at 20.3%.
Operating margins expanded to 20.0% for period ended TTM vis-vis 19.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 10.0 cr for period ended TTM vis-vis sales of Rs 7.0 cr for the period ended Mar 2021, rising 30.0%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 9.0 cr for period ended Mar 2021 vis-vis Rs 5.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 231% on a 1 Year basis vis-vis a return of 93% over the last 3 Years. – The compounded sales growth on a TTM bassis is 44% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is 66% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 7.33 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 204.24 and is trading at 198.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
