Mehabe score: 4 G Factor: 5 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 5 and Piotski score of 7.
Description
Josts Engineering Company is primary engaged in the business areas are material handling and engineered products.Site:505750Main Symbol:JOSTS
Stock trades at 610.0, above its 50dma 495.33. It also trades above its 200dma 387.35. The stock remains bullish on techicals
The 52 week high is at 663.90 and the 52week low is at 231.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has been maintaining a healthy dividend payout of 22.57%
Weakness
– Stock is trading at 3.95 times its book value
– has a low return on equity of 9.97% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 27.8x. GMM Pfaudler trades at the industry’s max P/E of 92.56x. 505750 trades at a P/E of 30.6x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 505750 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by Josts Engg. Co.: a return of 29.53 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 22.71 cr compared to Rs 13.82 cr for period ended Jun 2020, a rise of 64.3%
Operating Profits reported at Rs 1.02 cr for period ended Jun 2021 vis-vis 1.95 for period ended Jun 2020 .
Operating Margins contracted -961.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.32 compared to Rs 8.89 for previous quarter ended Mar 2021 and Rs 3.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 105.0 cr for period ended TTM vis-vis sales of Rs 96.0 cr for the period ended Mar 2021, a growth of 8.6%. The 3 year sales cagr stood at -2.1%.
Operating margins shrank to 8.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 3.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, falling 33.3%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 13.0 cr for period ended Mar 2021 vis-vis Rs 6.0 cr for period ended Mar 2020
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 14.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -16% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 589% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 50.46% vis-vis 50.46% for Mar 2021
Conclusion
– has reduced debt.
– has been maintaining a healthy dividend payout of 22.57% – Stock is trading at 3.95 times its book value
– has a low return on equity of 9.97% for last 3 years.
-‘s cost of borrowing seems high
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 495.33 and is trading at 610.0, thus bullish price action wise.
