Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
Simplex Realty is engaged in the Business of Construction and Real Estate Development.Site:503229Main Symbol:SIMPLXREA
Stock trades at 89.9, above its 50dma 71.8. It also trades above its 200dma 56.89. The stock remains bullish on techicals
The 52 week high is at 96.90 and the 52week low is at 33.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.25 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 -31.96% over past five years.
– has a low return on equity of -0.78% for last 3 years.
-Contingent liabilities of Rs.51.76 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 35.9x. Phoenix Mills trades at the industry’s max P/E of 277.46x. 503229 trades at a P/E of 48.9x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 503229 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 3.7%. The max 1- month return was given by Brigade Enterpr.: a return of 14.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.17 cr compared to Rs 3.32 cr for period ended Mar 2020, a fall of 94.9%
Company reported negative operating profit of Rs -0.95 cr for period ended Mar 2021. For same period last year, operating profit was -1.04
The EPS for Mar 2021 was Rs 1.83 compared to Rs 0.87 for previous quarter ended Dec 2020 and Rs 0.47 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.16 cr for period ended Mar 2021 vis-vis sales of Rs 9.01 cr for the period ended Mar 2020, a fall of 116.6%. The 3 year sales cagr stood at -36.7%.
Operating margins shrank to -104.33% for period ended Mar 2021 vis-vis -39.96% for period ended Mar 2020, contraction of 6437.0 bps.
Net Profit reported at Rs 0.55 cr for period ended Mar 2021 vis-vis sales of Rs 0.34 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.06 cr for period ended Mar 2021 vis-vis Rs -3.84 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 1.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 176% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -54% vis-vis a compounded sales growth of -37% over the last 3 Years. – The compounded profit growth on a TTM basis is 62% vis-vis a compounded profit growth of 22% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.05% vis-vis 27.81% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.25 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 -31.96% over past five years.
– has a low return on equity of -0.78% for last 3 years.
-Contingent liabilities of Rs.51.76 Cr.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 71.8 and is trading at 89.9, thus bullish price action wise.
