Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5.
Description
Keerthi Industries is engaged in the business of manufacturing, selling and distribution of Cement under the brand name SUVARNA. The company also manufactures printed circuit boards and engaged in the generation of wind power.(Source : 201903 Annual Report Page No: 59)Site:518011
Market Cap:
Rs 120 cr
Price:
150.0
Trading pe:
8.3x
Book-value:
86.6/share
Div yield:
0.60 %
Earning yield:
17.45%
Face-value:
10.0/share
52week high:
160.00
52week low:
31.40
Technical Analysis
Stock trades at 150.0, above its 50dma 131.82. It also trades above its 200dma 93.12. The stock remains bullish on techicals
The 52 week high is at 160.00 and the 52week low is at 31.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 271.55%
Weakness
– The company has delivered a poor sales growth of 2.36% over past five years.
– has a low return on equity of 1.15% for last 3 years.
-Promoters have pledged 40.04% of their holding.
-Earnings include an other income of Rs.9.87 Cr.
Competition
– The industry trades at a mean P/E of 15.9x. The Ramco Cement trades at the industry’s max P/E of 31.24x. 518011 trades at a P/E of 8.3x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 8.0. 518011 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 8.5%. The max 1- month return was given by K C P: a return of 29.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 65.78 cr compared to Rs 43.27 cr for period ended Mar 2020, a rise of 52.0%
Company reported operating profit of Rs 10.59 cr for period ended Mar 2021, operating profit margin at 16.1 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs -0.66 compared to Rs 6.87 for previous quarter ended Dec 2020 and Rs -0.76 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 232.0 cr for period ended Mar 2021 vis-vis sales of Rs 172.0 cr for the period ended Mar 2020, a healthy growth of 25.9%. The 3 year sales cagr stood at 6.3%.
Operating margins expanded to 21.0% for period ended Mar 2021 vis-vis 5.0% for period ended Mar 2020, expansion of 1600.0 bps.
Net Profit reported at Rs 19.0 cr for period ended Mar 2021 vis-vis sales of Rs -0.0 cr for the period ended Mar 2020, rising 100.0%.
Company recorded a healthy Net Profit CAGR of 33.4% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -11.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 317% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 1084% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.04% vis-vis 25.04% for Dec 2020
Conclusion
– has reduced debt.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 271.55% – The company has delivered a poor sales growth of 2.36% over past five years.
– has a low return on equity of 1.15% for last 3 years.
-Promoters have pledged 40.04% of their holding.
-Earnings include an other income of Rs.9.87 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 above its 50 DMA 131.82 and is trading at 150.0, thus bullish price action wise.
