Mehabe score: 5 G Factor: 5 Piotski Score: 7 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 7.
Description
Betex India is engaged in the business of Processing of Art Silk Cloth on job work basis.(Source : 202003 Annual Report Page No:68)Site:512477Main Symbol:BETXIND
Stock trades at 87.1, below its 50dma 92.3. However it is trading above its 200dma 65.91. 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 92.3.
The 52 week high is at 130.10 and the 52week low is at 14.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.52 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.93% over past five years.
– has a low return on equity of 4.98% for last 3 years.
-Contingent liabilities of Rs.18.88 Cr.
Competition
– The industry trades at a mean P/E of 12.0x. Alok Industries trades at the industry’s max P/E of 104.52x. 512477 trades at a P/E of 4.29x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 512477 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 17.6%. The max 1- month return was given by Raghuvir Synth: a return of 152.34 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 16.59 cr compared to Rs 9.29 cr for period ended Sep 2020, a rise of 78.6%
Operating Profits reported at Rs 0.4 cr for period ended Sep 2021 vis-vis 0.99 for period ended Sep 2020 .
Operating Margins contracted -824.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.07 compared to Rs 1.27 for previous quarter ended Jun 2021 and Rs 3.73 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 64.21 cr for period ended TTM vis-vis sales of Rs 48.54 cr for the period ended Mar 2021, a healthy growth of 24.4%. The 3 year sales cagr stood at 11.5%.
Operating margins shrank to 6.42% for period ended TTM vis-vis 7.5% for period ended Mar 2021, contraction of 108.0 bps.
Net Profit reported at Rs 2.65 cr for period ended TTM vis-vis sales of Rs 2.06 cr for the period ended Mar 2021, rising 22.3%.
Company recorded a healthy Net Profit CAGR of 39.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.07 cr for period ended Mar 2021 vis-vis Rs 3.1 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 411% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 2006% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 46.71% vis-vis 46.71% for Jun 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.52 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.93% over past five years.
– has a low return on equity of 4.98% for last 3 years.
-Contingent liabilities of Rs.18.88 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 92.3 and is trading at 87.1. Shows a near term lack of buying interest.
