Mehabe score: 1 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
SJ Corporation Ltd. specializes in jewelry manufacturing in India such as diamond studded rings, gold rings..etc.Site:504398
Market Cap:
Rs 10.2 cr
Price:
12.2
Trading pe:
x
Book-value:
9.91/share
Div yield:
0.00 %
Earning yield:
-2.56%
Face-value:
1.00/share
52week high:
12.90
52week low:
10.45
Technical Analysis
Stock trades at 12.2, below its 50dma 13.45 and below its 200dma 26.24. The stock remains bearish on technicals
The 52 week high is at 12.90 and the 52week low is at 10.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -28.76% over past five years.
– has a low return on equity of 0.00% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.1x. Titan Company trades at the industry’s max P/E of 159.24x. 504398 trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 6.0. 504398 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 10.3%. The max 1- month return was given by Kalyan Jewellers: a return of 29.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.17 cr compared to Rs 0.94 cr for period ended Mar 2020, a rise of 24.5%
Company reported negative operating profit of Rs -0.07 cr for period ended Mar 2021. For same period last year, operating profit was -0.05
The EPS for Mar 2021 was Rs -0.01 compared to Rs -0.07 for previous quarter ended Dec 2020 and Rs -0.05 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.73 cr for period ended Mar 2021 vis-vis sales of Rs 8.72 cr for the period ended Mar 2020, a fall of 133.8%. The 3 year sales cagr stood at -22.6%.
Operating margins shrank to -6.97% for period ended Mar 2021 vis-vis 0.46% for period ended Mar 2020, contraction of 743.0 bps.
Net Profit reported at Rs -0.17 cr for period ended Mar 2021 vis-vis sales of Rs 0.01 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -1.32 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 11% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -66% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -1100% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.14% vis-vis 29.14% for Dec 2020
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -28.76% over past five years.
– has a low return on equity of 0.00% for last 3 years.
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 below its 50 DMA 13.45 and is trading at 12.2. Shows a near term lack of buying interest.
