Mehabe score: 4 G Factor: 3 Piotski Score: 8 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 8.
Description
W.H. Brady & Co Ltd is engaged in the business of trading of material handling equipment, manufacturing, aviation support service, general engineering item and renting of space building.[1]Site:501391Main Symbol:WHBRADY
Stock trades at 176.0, above its 50dma 171.55. It also trades above its 200dma 154.71. The stock remains bullish on techicals
The 52 week high is at 245.90 and the 52week low is at 115.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.70 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 2.52% over past five years.
-Tax rate seems low
– has a low return on equity of 7.56% for last 3 years.
Competition
– The industry trades at a mean P/E of 29.3x. Adani Enterp. trades at the industry’s max P/E of 162.7x. 501391 trades at a P/E of 11.2x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 501391 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is -6.3%. The max 1- month return was given by W H Brady: a return of 5.55 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 13.51 cr compared to Rs 12.8 cr for period ended Sep 2020, a rise of 5.5%
Operating Profits reported at Rs 2.05 cr for period ended Sep 2021 vis-vis 1.9 for period ended Sep 2020 .
Operating Margins expanded 33.0 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 4.2 compared to Rs 2.16 for previous quarter ended Jun 2021 and Rs 4.12 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 55.53 cr for period ended TTM vis-vis sales of Rs 52.46 cr for the period ended Mar 2021, a growth of 5.5%. The 3 year sales cagr stood at -2.0%.
Operating margins shrank to 12.57% for period ended TTM vis-vis 13.19% for period ended Mar 2021, contraction of 62.0 bps.
Net Profit reported at Rs 4.03 cr for period ended TTM vis-vis sales of Rs 4.3 cr for the period ended Mar 2021, falling 6.7%.
Company reported a poor Net Profit CAGR of -3.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 11.27 cr for period ended Mar 2021 vis-vis Rs 6.98 cr for period ended Mar 2020
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 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 26% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 26.09% vis-vis 26.09% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.70 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 2.52% over past five years.
-Tax rate seems low
– has a low return on equity of 7.56% for last 3 years.
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 171.55 and is trading at 176.0 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
