Mehabe score: 2 G Factor: 3 Piotski Score: 3 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 3.
Description
Investment & Precision Castings is engaged in the production of investment castings.Site:504786
Market Cap:
Rs 112 cr
Price:
225.0
Trading pe:
x
Book-value:
137/share
Div yield:
0.04 %
Earning yield:
1.89%
Face-value:
10.0/share
52week high:
248.00
52week low:
130.00
Technical Analysis
Stock trades at 225.0, above its 50dma 212.69. It also trades above its 200dma 191.25. The stock remains bullish on techicals
The 52 week high is at 248.00 and the 52week low is at 130.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.45% over past five years.
– has a low return on equity of 8.16% for last 3 years.
Competition
– The industry trades at a mean P/E of 44.6x. Bharat Forge trades at the industry’s max P/E of 457.0x. 504786 trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. 504786 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 11.3%. The max 1- month return was given by Jayaswal Neco: a return of 28.14 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 36.28 cr compared to Rs 23.56 cr for period ended Mar 2020, a rise of 54.0%
Operating Profits reported at Rs 7.12 cr for period ended Mar 2021 vis-vis 3.44 for period ended Mar 2020 .
Operating Margins expanded 502.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.8 compared to Rs 4.28 for previous quarter ended Dec 2020 and Rs 0.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 105.0 cr for period ended Mar 2021 vis-vis sales of Rs 95.0 cr for the period ended Mar 2020, a growth of 9.5%. The 3 year sales cagr stood at -0.9%.
Net Profit reported at Rs 0.0 cr for period ended Mar 2021 vis-vis sales of Rs -1.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -1.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 58% on a 1 Year basis vis-vis a return of -19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -20% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -107% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 48.85% vis-vis 49.05% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.45% over past five years.
– has a low return on equity of 8.16% 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 212.69 and is trading at 225.0 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
