Mehabe score: 1 G Factor: 3 Piotski Score: 1 The stock has a rating SELL. 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 1.
Description
Orient Beverages is engaged in the manufacturing, trading and marketing of Packaged Drinking Water and Carbonated Soft Drinks under the trade brand BISLERI.Site:507690Main Symbol:ORIBEVER
Stock trades at 73.6, below its 50dma 75.05. However it is trading above its 200dma 69.88. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 75.05.
The 52 week high is at 96.95 and the 52week low is at 52.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.04 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.88% over past five years.
– has a low return on equity of -6.05% for last 3 years.
-Debtor days have increased from 30.74 to 42.17 days.
Competition
– The industry trades at a mean P/E of 24.8x. Jubilant Ingrevia trades at the industry’s max P/E of 180.58x. 507690 trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 507690 has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is 0.9%. The max 1- month return was given by Jubilant Ingrevia: a return of 27.86 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 10.01 cr compared to Rs 6.42 cr for period ended Jun 2020, a rise of 55.9%
Company reported negative operating profit of Rs -1.67 cr for period ended Jun 2021. For same period last year, operating profit was -1.84
The EPS for Jun 2021 was Rs -10.04 compared to Rs -4.86 for previous quarter ended Mar 2021 and Rs -9.95 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 46.43 cr for period ended TTM vis-vis sales of Rs 42.84 cr for the period ended Mar 2021, a growth of 7.7%. The 3 year sales cagr stood at -12.5%.
Operating margins expanded to -13.44% for period ended TTM vis-vis -14.96% for period ended Mar 2021, expansion of 152.0 bps.
Net Profit reported at Rs -7.41 cr for period ended TTM vis-vis sales of Rs -7.39 cr for the period ended Mar 2021, falling 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 -39.0% compared to -6.0% over the last 3 Years. – The stock has given a return of 19% on a 1 Year basis vis-vis a return of -15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -45% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -624% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 48.38% vis-vis 48.39% for Mar 2021
Conclusion
– Stock is trading at 1.04 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.88% over past five years.
– has a low return on equity of -6.05% for last 3 years.
-Debtor days have increased from 30.74 to 42.17 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 75.05 and is trading at 73.6. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
