Mehabe score: 3 G Factor: 1 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 1 and Piotski score of 5.
Description
Wonder Fibromats is a manufacturer of ceiling fans, heavy duty exhaust fan, light duty exhaust fan & farata fan. [1] Site:WFL Main Symbol:WFL
Stock trades at 197.0, above its 50dma 139.14. It also trades above its 200dma 84.12. The stock remains bullish on techicals
The 52 week high is at 230.45 and the 52week low is at 38.44
Price Chart
P/E Chart
Sales and Margin
Strengths
– has a good return on equity (ROE) track record: 3 Years ROE 15.97%
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Debtor days have increased from 116.19 to 144.54 days.
Competition
– The industry trades at a mean P/E of 30.9x. A B B trades at the industry’s max P/E of 107.27x. WFL trades at a P/E of 61.0x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 9.0. WFL has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Wonder Fibromats: a return of 77.27 %
Quarterly Results
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Company reported operating profit of Rs 5.95 cr for period ended Dec 2021 and operating profit margin at 5.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.29 compared to Rs 0.16 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 305.0 cr for period ended Mar 2021 vis-vis sales of Rs 297.0 cr for the period ended Mar 2020, a growth of 2.6%. The 3 year sales cagr stood at 1.3%.
Operating margins expanded to 4.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020,
Company reported a poor Net Profit CAGR of -20.6% over the last 3 years
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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 422% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -2% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– has a good return on equity (ROE) track record: 3 Years ROE 15.97% – Though the company is reporting repeated profits, it is not paying out dividend
-Debtor days have increased from 116.19 to 144.54 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 139.14 and is trading at 197.0 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
