Mehabe score: 4 G Factor: 0 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 0 and Piotski score of 5.
Description
Ceeta Industries is engaged in manufacturing Prestressed Concrete Poles at its factory site in the state on Jharkhand apart from the trading and investment activities.Site:514171Main Symbol:CEETAIN
Stock trades at 18.4, above its 50dma 9.91. It also trades above its 200dma 7.45. The stock remains bullish on techicals
The 52 week high is at 17.00 and the 52week low is at 3.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.04 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 -27.32% over past five years.
– has a low return on equity of 3.34% for last 3 years.
– has high debtors of 153.95 days.
Competition
– The industry trades at a mean P/E of 26.2x. Affle India trades at the industry’s max P/E of 90.28x. 514171 trades at a P/E of 62.2x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 514171 has a G-Factor of 0 and Piotski scoreof 5.
– Average 1 month return for industry is 0.4%. The max 1- month return was given by Century Plyboard: a return of 28.46 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.2 cr compared to Rs 0.16 cr for period ended Sep 2020, a rise of 25.0%
Company reported negative operating profit of Rs -0.37 cr for period ended Sep 2021. For same period last year, operating profit was -0.31
The EPS for Sep 2021 was Rs 0.12 compared to Rs 0.09 for previous quarter ended Jun 2021 and Rs 0.07 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.28 cr for period ended TTM vis-vis sales of Rs 1.47 cr for the period ended Mar 2021, a fall of 14.8%. The 3 year sales cagr stood at -55.6%.
Operating margins shrank to -107.81% for period ended TTM vis-vis -96.6% for period ended Mar 2021, contraction of 1121.0 bps.
Net Profit reported at Rs 0.45 cr for period ended TTM vis-vis sales of Rs 0.47 cr for the period ended Mar 2021, falling 4.4%.
Company reported a poor Net Profit CAGR of -40.7% 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 3.06 cr for period ended Mar 2021 vis-vis Rs -3.87 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 1.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 397% on a 1 Year basis vis-vis a return of 39% over the last 3 Years. – The compounded sales growth on a TTM bassis is -42% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is -7% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 27.86% vis-vis 27.86% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 1.04 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 -27.32% over past five years.
– has a low return on equity of 3.34% for last 3 years.
– has high debtors of 153.95 days.
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 9.91 and is trading at 18.4 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
