Mehabe score: 3 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
Description
Virat Crane Industries is engaged in the business of procurement and processing of Milk and Milk Products like Ghee, Curd and Butter Milk etc.(Source : 201903 Annual Report Page No: 58)Site:519457
Market Cap:
Rs 63.2 cr
Price:
31.0
Trading pe:
12.4x
Book-value:
23.9/share
Div yield:
0.00 %
Earning yield:
13.04%
Face-value:
10.0/share
52week high:
39.80
52week low:
14.70
Technical Analysis
Stock trades at 31.0, above its 50dma 27.53. It also trades above its 200dma 23.52. The stock remains bullish on techicals
The 52 week high is at 39.80 and the 52week low is at 14.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.38% over past five years.
Competition
– The industry trades at a mean P/E of 43.1x. Hindustan Foods trades at the industry’s max P/E of 117.75x. 519457 trades at a P/E of 12.4x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. 519457 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by Virat Crane Inds: a return of 33.12 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 23.31 cr compared to Rs 23.24 cr for period ended Mar 2020, a rise of 0.3%
Operating Profits reported at Rs 3.0 cr for period ended Mar 2021 vis-vis 1.95 for period ended Mar 2020 .
Operating Margins expanded 447.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.03 compared to Rs 0.65 for previous quarter ended Dec 2020 and Rs 0.56 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 84.98 cr for period ended TTM vis-vis sales of Rs 85.43 cr for the period ended Mar 2020, a fall of 0.5%. The 3 year sales cagr stood at -1.1%.
Operating margins shrank to 10.25% for period ended TTM vis-vis 10.55% for period ended Mar 2020, contraction of 30.0 bps.
Net Profit reported at Rs 6.06 cr for period ended TTM vis-vis sales of Rs 6.19 cr for the period ended Mar 2020, falling 2.1%.
Company reported a poor Net Profit CAGR of -0.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 52% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -13% vis-vis a compounded profit growth of 38% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.56% vis-vis 26.49% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.38% over past five years.
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 27.53 and is trading at 31.0, thus bullish price action wise.
