Mehabe score: 2 G Factor: 0 Piotski Score: 4 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 0 and Piotski score of 4.
Description
The main business of the company is to carry on the business in trading of steel and acting as advisor and consultant on all matters and complications relating to the steel industry.[1] Site:SUPREMEX Main Symbol:SUPREMEX
Stock trades at 4.32, below its 50dma 23.0 and below its 200dma 17.41. The stock remains bearish on technicals
The 52 week high is at 33.35 and the 52week low is at 13.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Debtor days have improved from 128.06 to 44.39 days.
Weakness
– Stock is trading at 3.89 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 3.22% for last 3 years.
Competition
– The industry trades at a mean P/E of 42.9x. Adani Enterp. trades at the industry’s max P/E of 169.49x. SUPREMEX trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. SUPREMEX has a G-Factor of 0 and Piotski scoreof 4.
– Average 1 month return for industry is -10.9%. The max 1- month return was given by MMTC: a return of 13.67 %
Quarterly Results
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Company reported negative operating profit of Rs -0.03 cr for period ended Dec 2021. For same period last year, operating profit was -0.03.
The EPS for quarter ended Dec 2021 is Rs -0.01 compared to Rs -0.01 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.01 cr for period ended TTM vis-vis sales of Rs 2.22 cr for the period ended Mar 2021, a fall of 22100.0%. The 3 year sales cagr stood at -86.3%.
Operating margins shrank to -2900.0% for period ended TTM vis-vis -6.31% for period ended Mar 2021, contraction of 289369.0 bps.
Net Profit reported at Rs -0.19 cr for period ended TTM vis-vis sales of Rs 0.06 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.86 cr for period ended Mar 2021 vis-vis Rs 0.12 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 2.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 14% on a 1 Year basis vis-vis a return of -28% over the last 3 Years. – The compounded sales growth on a TTM bassis is -100% vis-vis a compounded sales growth of -14% over the last 3 Years. – The compounded profit growth on a TTM basis is -163% vis-vis a compounded profit growth of 0% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 58.15% vis-vis 58.15% for Sep 2021
Conclusion
– is almost debt free.
-Debtor days have improved from 128.06 to 44.39 days. – Stock is trading at 3.89 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 3.22% for last 3 years.
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 23.0 and is trading at 4.32. 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
