Mehabe score: 3 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6.
Description
Hindoostan Mills is engaged in the business of Manufacture and Sale of Fabric and Yarn, Technical Fabric and Refiling of Elastic Calendar Bowls.Site:509895Main Symbol:HINDMILL
Stock trades at 292.0, below its 50dma 308.66. However it is trading above its 200dma 278.32. 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 308.66.
The 52 week high is at 418.00 and the 52week low is at 156.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.83 times its book value
– is expected to give good quarter
– has delivered good profit growth of 22.44% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of -16.31% over past five years.
– has a low return on equity of -9.83% for last 3 years.
-Contingent liabilities of Rs.20.13 Cr.
-Earnings include an other income of Rs.27.57 Cr.
Competition
– The industry trades at a mean P/E of 69.2x. Chandni Textiles trades at the industry’s max P/E of 184.81x. 509895 trades at a P/E of 6.3x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 6.0. 509895 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -2.8%. The max 1- month return was given by Stovec Inds.: a return of 5.59 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 25.28 cr compared to Rs 14.01 cr for period ended Sep 2020, a rise of 80.4%
Company reported operating profit of Rs 0.45 cr for period ended Sep 2021, operating profit margin at 1.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.18 compared to Rs -6.37 for previous quarter ended Jun 2021 and Rs -17.78 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 91.0 cr for period ended TTM vis-vis sales of Rs 65.0 cr for the period ended Mar 2021, a healthy growth of 28.6%. The 3 year sales cagr stood at -17.5%.
Operating margins expanded to -1.0% for period ended TTM vis-vis -5.0% for period ended Mar 2021, expansion of 400.0 bps.
Net Profit reported at Rs 21.0 cr for period ended TTM vis-vis sales of Rs 17.0 cr for the period ended Mar 2021, rising 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of -25% over the last 3 Years. – The compounded profit growth on a TTM basis is 218% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 39.23% vis-vis 39.23% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.83 times its book value
– is expected to give good quarter
– has delivered good profit growth of 22.44% CAGR over last 5 years – The company has delivered a poor sales growth of -16.31% over past five years.
– has a low return on equity of -9.83% for last 3 years.
-Contingent liabilities of Rs.20.13 Cr.
-Earnings include an other income of Rs.27.57 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 308.66 and is trading at 292.0. Shows a near term lack of buying interest.
