Mehabe score: 3 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
Gujarat Intrux is engaged in the business of Manufacturing and supply of stainless steel, Non- Alloy Steel and alloy steel Castings.Site:517372
Market Cap:
Rs 37.9 cr
Price:
110.0
Trading pe:
10.5x
Book-value:
148/share
Div yield:
2.72 %
Earning yield:
22.61%
Face-value:
10.0/share
52week high:
130.00
52week low:
70.00
Technical Analysis
Stock trades at 110.0, above its 50dma 104.26. It also trades above its 200dma 97.36. The stock remains bullish on techicals
The 52 week high is at 130.00 and the 52week low is at 70.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.75 times its book value
Weakness
– has a low return on equity of 9.83% for last 3 years.
Competition
– The industry trades at a mean P/E of 16.5x. Apollo Tricoat trades at the industry’s max P/E of 40.71x. 517372 trades at a P/E of 10.5x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 8.0. 517372 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 19.0%. The max 1- month return was given by Godawari Power: a return of 58.17 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 8.59 cr compared to Rs 12.07 cr for period ended Mar 2020, a fall of 28.8%
Operating Profits reported at Rs 1.24 cr for period ended Mar 2021 vis-vis 0.76 for period ended Mar 2020 .
Operating Margins expanded 813.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.07 compared to Rs 2.74 for previous quarter ended Dec 2020 and Rs 1.28 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 33.75 cr for period ended Mar 2021 vis-vis sales of Rs 47.87 cr for the period ended Mar 2020, a fall of 41.8%. The 3 year sales cagr stood at -1.5%.
Operating margins expanded to 16.83% for period ended Mar 2021 vis-vis 14.21% for period ended Mar 2020, expansion of 262.0 bps.
Net Profit reported at Rs 3.87 cr for period ended Mar 2021 vis-vis sales of Rs 4.78 cr for the period ended Mar 2020, falling 23.5%.
Company recorded a Net Profit CAGR of 4.1% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 41% 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 -23% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is -33% vis-vis a compounded profit growth of 86% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 42.39% vis-vis 42.62% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.75 times its book value – has a low return on equity of 9.83% 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 104.26 and is trading at 110.0 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
