Mehabe score: 2 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
Jindal Hotels is engaged in business of operating 3 star category Hotel (namely Grand Mercure Vadodara Surya Palace) and Restaurant (namely Azure Restaurant).Site:507981
Market Cap:
Rs 25.2 cr
Price:
37.8
Trading pe:
x
Book-value:
31.2/share
Div yield:
0.00 %
Earning yield:
-5.60%
Face-value:
10.0/share
52week high:
41.70
52week low:
17.30
Technical Analysis
Stock trades at 37.8, above its 50dma 27.47. It also trades above its 200dma 25.29. The stock remains bullish on techicals
The 52 week high is at 41.70 and the 52week low is at 17.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Promoter holding has increased by 3.31% over last quarter.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.52% over past five years.
– has a low return on equity of 3.89% for last 3 years.
Competition
– The industry trades at a mean P/E of 85.7x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. 507981 trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. 507981 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 33.3%. The max 1- month return was given by Jindal Hotels: a return of 73.62 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.43 cr compared to Rs 10.05 cr for period ended Mar 2020, a fall of 26.1%
Operating Profits reported at Rs 0.11 cr for period ended Mar 2021 vis-vis 2.14 for period ended Mar 2020 .
Operating Margins contracted -1981.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -3.82 compared to Rs -2.65 for previous quarter ended Dec 2020 and Rs 0.18 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.0 cr for period ended Mar 2021 vis-vis sales of Rs 38.0 cr for the period ended Mar 2020, a fall of 137.5%. The 3 year sales cagr stood at -22.2%.
Operating margins shrank to -8.0% for period ended Mar 2021 vis-vis 28.0% for period ended Mar 2020, contraction of 3600.0 bps.
Net Profit reported at Rs -11.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, 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 had stable/constant 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 70% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -53% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -798% vis-vis a compounded profit growth of 43% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 30.57% vis-vis 33.88% for Dec 2020
Conclusion
– Promoter holding has increased by 3.31% over last quarter. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 3.52% over past five years.
– has a low return on equity of 3.89% 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 27.47 and is trading at 37.8 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
