Mehabe score: 3 G Factor: 3 Piotski Score: 6 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 6.
Description
Him Teknoforge is engaged in a diverse range of products and services including manufacturing, sales, distribution and marketing of automotive, non-automotive and enigineering components like Alloy Steel Forgings, Gears, Shafts, Axles, Assemblies & sub-assemblies, etc.Site:505712
Market Cap:
Rs 99.9 cr
Price:
127.0
Trading pe:
51.8x
Book-value:
187/share
Div yield:
0.16 %
Earning yield:
8.01%
Face-value:
2.00/share
52week high:
128.00
52week low:
33.05
Technical Analysis
Stock trades at 127.0, above its 50dma 86.63. It also trades above its 200dma 71.16. The stock remains bullish on techicals
The 52 week high is at 128.00 and the 52week low is at 33.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.68 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of 6.10% for last 3 years.
Competition
– The industry trades at a mean P/E of 33.1x. Minda Industries trades at the industry’s max P/E of 199.1x. 505712 trades at a P/E of 51.8x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 505712 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 13.1%. The max 1- month return was given by Him Teknoforg.: a return of 68.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 85.01 cr compared to Rs 49.8 cr for period ended Mar 2020, a rise of 70.7%
Operating Profits reported at Rs 9.26 cr for period ended Mar 2021 vis-vis 4.91 for period ended Mar 2020 .
Operating Margins expanded 103.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.94 compared to Rs 4.89 for previous quarter ended Dec 2020 and Rs -0.14 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 239.0 cr for period ended Mar 2021 vis-vis sales of Rs 222.0 cr for the period ended Mar 2020, a growth of 7.1%. The 3 year sales cagr stood at -3.6%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, rising 40.0%.
Company reported a poor Net Profit CAGR of -23.1% over the last 3 years
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 2.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 237% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is -68% vis-vis a compounded profit growth of -25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 44.68% vis-vis 44.7% for Dec 2020
Conclusion
– Stock is trading at 0.68 times its book value – has low interest coverage ratio.
– has a low return on equity of 6.10% 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 86.63 and is trading at 127.0 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
