Mehabe score: 6 G Factor: 6 Piotski Score: 7 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 6 and Piotski score of 7.
Description
High Energy Batteries (India) is engaged in the business of Aerospace, Naval and Power System Batteries Silver Zinc, Silver Chloride Magnesium and Nickel Cadmium Batteries.Site:504176Main Symbol:HIGHENE
Stock trades at 2180.0, above its 50dma 1284.94. It also trades above its 200dma 848.51. The stock remains bullish on techicals
The 52 week high is at 2076.40 and the 52week low is at 203.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 31.74% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 33.63%
Weakness
– Stock is trading at 9.32 times its book value
Competition
– The industry trades at a mean P/E of 29.3x. A B B trades at the industry’s max P/E of 157.48x. 504176 trades at a P/E of 21.3x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 504176 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 8.6%. The max 1- month return was given by High Energy Bat.: a return of 75.76 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 23.24 cr compared to Rs 9.76 cr for period ended Mar 2020, a rise of 138.1%
Operating Profits reported at Rs 8.7 cr for period ended Mar 2021 vis-vis 1.52 for period ended Mar 2020 .
Operating Margins expanded 2186.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 28.67 compared to Rs 23.32 for previous quarter ended Dec 2020 and Rs -1.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 78.0 cr for period ended Mar 2021 vis-vis sales of Rs 61.0 cr for the period ended Mar 2020, a healthy growth of 21.8%. The 3 year sales cagr stood at 9.8%.
Operating margins expanded to 39.0% for period ended Mar 2021 vis-vis 25.0% for period ended Mar 2020, expansion of 1400.0 bps.
Net Profit reported at Rs 18.0 cr for period ended Mar 2021 vis-vis sales of Rs 6.0 cr for the period ended Mar 2020, rising 66.7%.
Company recorded a healthy Net Profit CAGR of 81.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 56.0% compared to 34.0% over the last 3 Years. – The stock has given a return of 942% on a 1 Year basis vis-vis a return of 89% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 227% vis-vis a compounded profit growth of 77% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 51.94% vis-vis 51.94% for Dec 2020
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 31.74% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 33.63% – Stock is trading at 9.32 times its book value
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 1284.94 and is trading at 2180.0, thus bullish price action wise.
