Mehabe score: 3 G Factor: 2 Piotski Score: 2 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 2 and Piotski score of 2.
Description
Amrit Corp is engaged in producing & distributing of Milk Products; development/ sale of Real Estate projects and Services/ treasury.Site:507525
Market Cap:
Rs 231 cr
Price:
760.0
Trading pe:
109.0x
Book-value:
616/share
Div yield:
0.66 %
Earning yield:
1.57%
Face-value:
10.0/share
52week high:
825.00
52week low:
615.00
Technical Analysis
Stock trades at 760.0, above its 50dma 722.96. It also trades above its 200dma 713.86. The stock remains bullish on techicals
The 52 week high is at 825.00 and the 52week low is at 615.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has a low return on equity of 4.00% for last 3 years.
-Earnings include an other income of Rs.15.03 Cr.
Competition
– The industry trades at a mean P/E of 40.0x. Hindustan Foods trades at the industry’s max P/E of 117.41x. 507525 trades at a P/E of 109.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. 507525 has a G-Factor of 2 and Piotski scoreof 2.
– Average 1 month return for industry is 3.4%. The max 1- month return was given by Varun Beverages: a return of 21.69 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 13.59 cr compared to Rs 15.11 cr for period ended Mar 2020, a fall of 10.1%
Company reported negative operating profit of Rs -1.8 cr for period ended Mar 2021. For same period last year, operating profit was -1.67
The EPS for Mar 2021 was Rs 8.43 compared to Rs 23.67 for previous quarter ended Dec 2020 and Rs -36.44 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 37.0 cr for period ended Mar 2021 vis-vis sales of Rs 74.0 cr for the period ended Mar 2020, a fall of 100.0%. The 3 year sales cagr stood at -11.8%.
Operating margins shrank to -24.0% for period ended Mar 2021 vis-vis -2.0% for period ended Mar 2020, contraction of 2200.0 bps.
Net Profit reported at Rs 16.0 cr for period ended Mar 2021 vis-vis sales of Rs -3.0 cr for the period ended Mar 2020, rising 118.8%.
Company reported a poor Net Profit CAGR of -2.0% over the last 3 years
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 -4.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -2.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 16% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -50% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is -83% 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 25.43% vis-vis 25.43% for Dec 2020
Conclusion
– is almost debt free. – has a low return on equity of 4.00% for last 3 years.
-Earnings include an other income of Rs.15.03 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 722.96 and is trading at 760.0 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
