Mehabe score: 4 G Factor: 3 Piotski Score: 5 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 5.
Description
Ras Resorts & Apart Hotels Ltd was incorporated in 1985. The Company is primarily engaged in the business of owning, operating hotels and resorts in Silvassa. Registered office of the company is in Mumbai.#Site:507966Main Symbol:RASRESOR
Stock trades at 29.5, above its 50dma 27.81. It also trades above its 200dma 29.06. The stock remains bullish on techicals
The 52 week high is at 42.00 and the 52week low is at 13.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.56 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -11.99% over past five years.
– has a low return on equity of -0.30% for last 3 years.
Competition
– The industry trades at a mean P/E of 74.2x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. 507966 trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. 507966 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 1.3%. The max 1- month return was given by Mahindra Holiday: a return of 21.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.47 cr compared to Rs 2.29 cr for period ended Mar 2020, a fall of 35.8%
Operating Profits reported at Rs 0.31 cr for period ended Mar 2021 vis-vis 0.17 for period ended Mar 2020 .
Operating Margins expanded 1366.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.08 compared to Rs -0.05 for previous quarter ended Dec 2020 and Rs 0.0 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.53 cr for period ended Mar 2021 vis-vis sales of Rs 8.9 cr for the period ended Mar 2020, a fall of 96.5%. The 3 year sales cagr stood at -15.9%.
Operating margins expanded to 12.14% for period ended Mar 2021 vis-vis 8.09% for period ended Mar 2020, expansion of 405.0 bps.
Net Profit reported at Rs -0.39 cr for period ended Mar 2021 vis-vis sales of Rs 0.09 cr for the period ended Mar 2020, falling 0%.
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 stock has given a return of -19% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -49% vis-vis a compounded sales growth of -16% over the last 3 Years. – The compounded profit growth on a TTM basis is -63% 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 25.66% vis-vis 25.66% for Mar 2021
Conclusion
– Stock is trading at 0.56 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -11.99% over past five years.
– has a low return on equity of -0.30% 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 27.81 and is trading at 29.5 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
