Mehabe score: 4 G Factor: 3 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 3 and Piotski score of 5.
Description
KLK Electrical is an Electrical Equipment Manufacturing company incorporated in the year 1980 Site:KLKELEC Main Symbol:KLKELEC
Stock trades at 28.6, above its 50dma 22.09. It also trades above its 200dma 16.78. The stock remains bullish on techicals
The 52 week high is at 28.65 and the 52week low is at 10.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 13.69 times its book value
-Promoter holding is low: 6.01%
-Earnings include an other income of Rs.1.01 Cr.
– has high debtors of 642.40 days.
Competition
– The industry trades at a mean P/E of 31.7x. Hitachi Energy trades at the industry’s max P/E of 116.06x. KLKELEC trades at a P/E of 19.1x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 9.0. KLKELEC has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 7.3%. The max 1- month return was given by CG Power & Indu.: a return of 26.63 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 0.4 cr compared to Rs 0.21 cr for period ended Mar 2021, a rise of 90.5% .
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Company reported operating profit of Rs 0.36 cr for period ended Mar 2022 and operating profit margin at 90.0 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Mar 2022 is Rs 1.49 compared to Rs 0.15 for previous quarter ended Dec 2021 and Rs -0.26 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.5 cr for period ended Mar 2022 vis-vis sales of Rs 1.04 cr for the period ended Mar 2021, a fall of 108.0%.
Operating margins expanded to 72.0% for period ended Mar 2022 vis-vis -7.69% for period ended Mar 2021, expansion of 7969.0 bps.
Net Profit reported at Rs 1.3 cr for period ended Mar 2022 vis-vis sales of Rs -0.07 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -0.06 cr for period ended Mar 2021
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 72.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 59% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -52% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 1957% vis-vis a compounded profit growth of 174% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 93.99% vis-vis 93.99% for Sep 2021
Conclusion
– is almost debt free. – Stock is trading at 13.69 times its book value
-Promoter holding is low: 6.01%
-Earnings include an other income of Rs.1.01 Cr.
– has high debtors of 642.40 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 22.09 and is trading at 28.6 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
