Mehabe score: 5 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
IST Ltd, incorporated in 1976, is engaged in the business of manufacturing high precision engineering components/ assemblies for the Automobile and Consumer Goods Industry. It is also engaged in the development of Infrastructure for the IT / ITES Sector in Special Economic Zone(SEZ)#Site:508807
Market Cap:
Rs 477 cr
Price:
409.0
Trading pe:
5.64x
Book-value:
737/share
Div yield:
0.00 %
Earning yield:
26.51%
Face-value:
5.00/share
52week high:
503.90
52week low:
225.00
Technical Analysis
Stock trades at 409.0, above its 50dma 392.18. It also trades above its 200dma 377.09. The stock remains bullish on techicals
The 52 week high is at 503.90 and the 52week low is at 225.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.55 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 9.15% over past five years.
– has a low return on equity of 13.77% for last 3 years.
-Earnings include an other income of Rs.37.31 Cr.
Competition
– The industry trades at a mean P/E of 31.1x. WABCO India trades at the industry’s max P/E of 125.91x. 508807 trades at a P/E of 5.64x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 508807 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 2.4%. The max 1- month return was given by Endurance Tech.: a return of 8.89 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 41.0 cr compared to Rs 33.0 cr for period ended Mar 2020, a rise of 24.2%
Operating Profits reported at Rs 27.0 cr for period ended Mar 2021 vis-vis 16.0 for period ended Mar 2020 .
Operating Margins expanded 1736.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 22.86 compared to Rs 20.0 for previous quarter ended Dec 2020 and Rs 13.27 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 137.0 cr for period ended TTM vis-vis sales of Rs 118.0 cr for the period ended Mar 2020, a healthy growth of 13.9%. The 3 year sales cagr stood at 7.3%.
Operating margins expanded to 75.0% for period ended TTM vis-vis 70.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 96.0 cr for period ended TTM vis-vis sales of Rs 80.0 cr for the period ended Mar 2020, rising 16.7%.
Company reported a poor Net Profit CAGR of -1.4% over the last 3 years
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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 58% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -3% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.01% vis-vis 25.0% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.55 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 9.15% over past five years.
– has a low return on equity of 13.77% for last 3 years.
-Earnings include an other income of Rs.37.31 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 392.18 and is trading at 409.0 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
