Mehabe score: 4 G Factor: 2 Piotski Score: 5 The stock has a rating SELL. 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 2 and Piotski score of 5.
Description
Atlas Jewellery India Ltd offers a wide range of fashionable jewelry, modern & chic as well as traditional & ethnic. # It retails and exports jewelry which consists of gold, diamonds, etc. #
Main Points
Distribution Network
It has over 50 establishments and a store in every major business markets in the GCC and also having 3 mega showrooms at Cochin, Trivandrum, and Coimbatore #Site:514394Main Symbol:AJIL
Stock trades at 28.3, below its 50dma 28.95 and below its 200dma 34.51. The stock remains bearish on technicals
The 52 week high is at 69.70 and the 52week low is at 22.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Promoter holding has increased by 46.15% over last quarter.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.45% over past five years.
– has a low return on equity of 2.22% for last 3 years.
– has high debtors of 42571.26 days.
Competition
– The industry trades at a mean P/E of 24.0x. Titan Company trades at the industry’s max P/E of 123.72x. 514394 trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. 514394 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 5.2%. The max 1- month return was given by Goldiam Intl.: a return of 25.34 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.47 cr compared to Rs 0.24 cr for period ended Jun 2020, a rise of 95.8%
Operating Profits reported at Rs 1.58 cr for period ended Jun 2021 vis-vis 0.19 for period ended Jun 2020 .
Operating Margins expanded 25700.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.15 compared to Rs 0.06 for previous quarter ended Mar 2021 and Rs 0.01 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.54 cr for period ended TTM vis-vis sales of Rs 1.31 cr for the period ended Mar 2021, a healthy growth of 14.9%. The 3 year sales cagr stood at -22.5%.
Operating margins expanded to -216.88% for period ended TTM vis-vis -361.83% for period ended Mar 2021, expansion of 14495.0 bps.
Net Profit reported at Rs -3.59 cr for period ended TTM vis-vis sales of Rs -5.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 4.09 cr for period ended Mar 2021 vis-vis Rs -1.21 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of -46% on a 1 Year basis vis-vis a return of -54% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of -38% over the last 3 Years. – The compounded profit growth on a TTM basis is -136% vis-vis a compounded profit growth of -13% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 4.18% vis-vis 50.32% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Promoter holding has increased by 46.15% over last quarter. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.45% over past five years.
– has a low return on equity of 2.22% for last 3 years.
– has high debtors of 42571.26 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 28.95 and is trading at 28.3. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
