Mehabe score: 3 G Factor: 3 Piotski Score: 6 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 6.
Description
ATV Projects India is engaged in the business of rendering Project Management and Engineering Services, Project supplies and for executing jobs for various industries.(Source : 201903 Annual Report Page No: 35)Site:500028Main Symbol:ATVPR
Stock trades at 11.9, above its 50dma 7.74. It also trades above its 200dma 5.62. The stock remains bullish on techicals
The 52 week high is at 12.45 and the 52week low is at 2.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.34 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -15.03% over past five years.
-Promoter holding is low: 27.13%
– has a low return on equity of 1.32% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.4.70 Cr.
-Debtor days have increased from 59.46 to 75.68 days.
Competition
– The industry trades at a mean P/E of 22.4x. Sterling & Wils. trades at the industry’s max P/E of 22.41x. 500028 trades at a P/E of 22.4x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. 500028 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 27.7%. The max 1- month return was given by ATV Projects: a return of 69.76 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 13.65 cr compared to Rs 10.43 cr for period ended Mar 2020, a rise of 30.9%
Operating Profits reported at Rs 1.74 cr for period ended Mar 2021 vis-vis 1.07 for period ended Mar 2020 .
Operating Margins expanded 248.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.19 compared to Rs 0.1 for previous quarter ended Dec 2020 and Rs 0.09 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 33.81 cr for period ended Mar 2021 vis-vis sales of Rs 37.74 cr for the period ended Mar 2020, a fall of 11.6%. The 3 year sales cagr stood at -14.7%.
Operating margins expanded to 10.59% for period ended Mar 2021 vis-vis 9.72% for period ended Mar 2020, expansion of 87.0 bps.
Net Profit reported at Rs 6.91 cr for period ended Mar 2021 vis-vis sales of Rs 2.45 cr for the period ended Mar 2020, rising 64.5%.
Company reported a poor Net Profit CAGR of -43.6% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 201% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is 15% vis-vis a compounded profit growth of 0% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 68.8% vis-vis 68.8% for Dec 2020
Conclusion
– Stock is trading at 0.34 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -15.03% over past five years.
-Promoter holding is low: 27.13%
– has a low return on equity of 1.32% for last 3 years.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.4.70 Cr.
-Debtor days have increased from 59.46 to 75.68 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 7.74 and is trading at 11.9 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
