Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 7.
Description
National Standard (India) is primarily engaged in the business of real estate development.Site:504882Main Symbol:NATIONSTD
Stock trades at 1122.0, above its 50dma 923.48. It also trades above its 200dma 632.26. The stock remains bullish on techicals
The 52 week high is at 1323.75 and the 52week low is at 118.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 206.22 to 75.99 days.
Weakness
– Stock is trading at 10.61 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 -38.01% over past five years.
– has a low return on equity of 3.76% for last 3 years.
-Earnings include an other income of Rs.14.51 Cr.
Competition
– The industry trades at a mean P/E of 42.7x. Macrotech Devel. trades at the industry’s max P/E of 203.16x. 504882 trades at a P/E of 203.0x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 7.0. 504882 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 10.2%. The max 1- month return was given by H.G. Infra Engg.: a return of 21.6 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.38 cr compared to Rs 0.4 cr for period ended Jun 2020, a fall of 5.0%
Company reported negative operating profit of Rs -0.2 cr for period ended Jun 2021. For same period last year, operating profit was -0.11
The EPS for Jun 2021 was Rs 0.56 compared to Rs 3.34 for previous quarter ended Mar 2021 and Rs 0.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.0 cr for period ended TTM vis-vis sales of Rs 17.0 cr for the period ended Mar 2021, The 3 year sales cagr stood at 6.7%.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 11.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 30.1% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 848% on a 1 Year basis vis-vis a return of 260% over the last 3 Years. – The compounded sales growth on a TTM bassis is 213% vis-vis a compounded sales growth of -22% over the last 3 Years. – The compounded profit growth on a TTM basis is 69% vis-vis a compounded profit growth of -0% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.06% vis-vis 26.06% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 206.22 to 75.99 days. – Stock is trading at 10.61 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 -38.01% over past five years.
– has a low return on equity of 3.76% for last 3 years.
-Earnings include an other income of Rs.14.51 Cr.
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 923.48 and is trading at 1122.0 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
