Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 4.
Description
Mid India Industries is engaged in Lease, Trading and manufacturing of cotton & polyester yarn. Site:500277 Main Symbol:MIDINDIA
Stock trades at 3.36, below its 50dma 3.84. However it is trading above its 200dma 2.17. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 3.84.
The 52 week high is at 5.83 and the 52week low is at 0.82
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -41.18% over past five years.
– has high debtors of 581.30 days.
Competition
– The industry trades at a mean P/E of 9.5x. Arvind Ltd trades at the industry’s max P/E of 21.88x. 500277 trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. 500277 has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Vardhman Textile: a return of 31.65 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 1.43 cr compared to Rs 0.06 cr for period ended Sep 2020, a rise of 2283.3%
The EPS for Sep 2021 was Rs -0.02 compared to Rs 0.0 for previous quarter ended Jun 2021 and Rs -0.03 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.91 cr for period ended TTM vis-vis sales of Rs 1.62 cr for the period ended Mar 2021, a healthy growth of 67.0%. The 3 year sales cagr stood at -38.6%.
Operating margins expanded to 1.22% for period ended TTM vis-vis -0.62% for period ended Mar 2021, expansion of 184.0 bps.
Net Profit reported at Rs -0.19 cr for period ended TTM vis-vis sales of Rs -0.25 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.03 cr for period ended Mar 2021 vis-vis Rs -0.08 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 217% on a 1 Year basis vis-vis a return of 126% over the last 3 Years. – The compounded sales growth on a TTM bassis is -27% vis-vis a compounded sales growth of -58% over the last 3 Years. – The compounded profit growth on a TTM basis is -417% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 48.84% vis-vis 48.84% for Jun 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -41.18% over past five years.
– has high debtors of 581.30 days.
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 3.84 and is trading at 3.36. 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
