Mehabe score: 4 G Factor: 3 Piotski Score: 6 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 6.
Description
Axis Rail India is a professional Rail Infra firm registered with Indian Railways and offer services in construction of Railway Sidings including Overhead Electrification and Signaling and Design of Bridges. The services rendered by the firm also cover areas of Infrastructure development connected with Major Industries.Site:514360Main Symbol:KRRAIL
Stock trades at 31.2, above its 50dma 20.31. It also trades above its 200dma 17.09. The stock remains bullish on techicals
The 52 week high is at 30.45 and the 52week low is at 9.12
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.12 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.48% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 37.9x. Macrotech Devel. trades at the industry’s max P/E of 20.8x. 514360 trades at a P/E of 11.6x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 7.0. 514360 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by K&R Rail Engine.: a return of 46.48 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 33.52 cr compared to Rs 35.19 cr for period ended Mar 2020, a fall of 4.7%
Operating Profits reported at Rs 2.81 cr for period ended Mar 2021 vis-vis 0.71 for period ended Mar 2020 .
Operating Margins expanded 636.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.79 compared to Rs 0.48 for previous quarter ended Dec 2020 and Rs 0.18 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 130.0 cr for period ended Mar 2021 vis-vis sales of Rs 128.0 cr for the period ended Mar 2020, a growth of 1.5%. The 3 year sales cagr stood at 17.1%.
Operating margins expanded to 7.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 10.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 13% on a 1 Year basis vis-vis a return of 51% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 496% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.12% vis-vis 25.12% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.12 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.48% for last 3 years.
-‘s cost of borrowing seems high
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 20.31 and is trading at 31.2 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
