Mehabe score: 6 G Factor: 3 Piotski Score: 3 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 3.
Description
MRO-TEK Realty Ltd is engaged in manufacture and supply, as well as distribution of Access and Networking equipment & Solutions.[1] Site:MRO-TEK Main Symbol:MRO-TEK
Stock trades at 64.2, above its 50dma 59.73. It also trades above its 200dma 48.41. The stock remains bullish on techicals
The 52 week high is at 79.25 and the 52week low is at 22.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 1.55% over past five years.
– has high debtors of 153.30 days.
Competition
– The industry trades at a mean P/E of 23.7x. Cerebra Integr. trades at the industry’s max P/E of 40.39x. MRO-TEK trades at a P/E of 1.52x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. MRO-TEK has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -3.7%. The max 1- month return was given by TVS Elec.: a return of 36.14 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 8.56 cr compared to Rs 10.64 cr for period ended Dec 2020, a fall of 19.5%
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Company reported operating profit of Rs 0.51 cr for period ended Dec 2021 and operating profit margin at 6.0 % 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 -0.93 compared to Rs 0.3 for previous quarter ended Sep 2021 and Rs -0.97 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 126.0 cr for period ended TTM vis-vis sales of Rs 32.0 cr for the period ended Mar 2021, a healthy growth of 74.6%. The 3 year sales cagr stood at 67.1%.
Operating margins expanded to 70.0% for period ended TTM vis-vis -3.0% for period ended Mar 2021, expansion of 7300.0 bps.
Net Profit reported at Rs 79.0 cr for period ended TTM vis-vis sales of Rs -7.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -6.0 cr for period ended Mar 2021 vis-vis Rs -15.0 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 107% on a 1 Year basis vis-vis a return of 20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 361% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 802% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 45.21% vis-vis 45.21% for Sep 2021
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of 1.55% over past five years.
– has high debtors of 153.30 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 59.73 and is trading at 64.2 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
