Mehabe score: 7 G Factor: 1 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 1 and Piotski score of 5.
Description
Kintech Renewables is primarily engaged in the business segment of renewable energy.Site:512329
Market Cap:
Rs 13.0 cr
Price:
130.0
Trading pe:
43.4x
Book-value:
115/share
Div yield:
0.77 %
Earning yield:
13.44%
Face-value:
10.0/share
52week high:
135.20
52week low:
92.15
Technical Analysis
Stock trades at 130.0, above its 50dma 118.76. It also trades above its 200dma 79.15. The stock remains bullish on techicals
The 52 week high is at 135.20 and the 52week low is at 92.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.13 times its book value
– has been maintaining a healthy dividend payout of 40.43%
Weakness
– has a low return on equity of 2.60% for last 3 years.
Competition
– The industry trades at a mean P/E of 21.5x. Adani Green trades at the industry’s max P/E of 931.18x. 512329 trades at a P/E of 43.4x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. 512329 has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 15.2%. The max 1- month return was given by Adani Power: a return of 39.77 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.74 cr compared to Rs 0.14 cr for period ended Mar 2020, a rise of 4000.0%
Operating Profits reported at Rs 0.07 cr for period ended Mar 2021 vis-vis 0.11 for period ended Mar 2020 .
Operating Margins contracted -7735.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.2 compared to Rs 0.6 for previous quarter ended Dec 2020 and Rs 1.8 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.31 cr for period ended Mar 2021 vis-vis sales of Rs 0.14 cr for the period ended Mar 2020, a healthy growth of 97.8%. The 3 year sales cagr stood at 103.4%.
Operating margins expanded to -2.38% for period ended Mar 2021 vis-vis -35.71% for period ended Mar 2020, expansion of 3333.0 bps.
Net Profit reported at Rs 0.3 cr for period ended Mar 2021 vis-vis sales of Rs 0.47 cr for the period ended Mar 2020, falling 56.7%.
Company recorded a healthy Net Profit CAGR of 18.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -0.44 cr for period ended Mar 2020
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 3.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 21% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4407% vis-vis a compounded sales growth of 103% over the last 3 Years. – The compounded profit growth on a TTM basis is 25% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.2% vis-vis 25.2% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.13 times its book value
– has been maintaining a healthy dividend payout of 40.43% – has a low return on equity of 2.60% 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 118.76 and is trading at 130.0 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
