Mehabe score: 3 G Factor: 2 Piotski Score: 3 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 3.
Description
Suditi Industries is engaged in the business of processing and manufacturing of knitted hosiery fabrics and readymade garments. The company is also in the business of retail sector.Site:521113Main Symbol:SUDTIND-B
Stock trades at 16.0, below its 50dma 17.37. However it is trading above its 200dma 14.71. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 17.37.
The 52 week high is at 19.95 and the 52week low is at 7.99
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.77% over past five years.
– has a low return on equity of -21.48% for last 3 years.
– has high debtors of 243.92 days.
Competition
– The industry trades at a mean P/E of 21.8x. Garware Tech. trades at the industry’s max P/E of 37.84x. 521113 trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. 521113 has a G-Factor of 2 and Piotski scoreof 3.
– Average 1 month return for industry is -5.4%. The max 1- month return was given by TCNS Clothing Co: a return of 9.63 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 19.37 cr compared to Rs 2.94 cr for period ended Jun 2020, a rise of 558.8%
Company reported operating profit of Rs 1.42 cr for period ended Jun 2021, operating profit margin at 7.3 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs -0.22 compared to Rs -6.33 for previous quarter ended Mar 2021 and Rs -2.25 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 67.0 cr for period ended TTM vis-vis sales of Rs 50.0 cr for the period ended Mar 2021, a healthy growth of 25.4%. The 3 year sales cagr stood at -15.7%.
Operating margins expanded to -12.0% for period ended TTM vis-vis -23.0% for period ended Mar 2021, expansion of 1100.0 bps.
Net Profit reported at Rs -19.0 cr for period ended TTM vis-vis sales of Rs -23.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -85.0% compared to -21.0% over the last 3 Years. – The stock has given a return of 60% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of -22% over the last 3 Years. – The compounded profit growth on a TTM basis is -205% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 33.54% vis-vis 33.54% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.77% over past five years.
– has a low return on equity of -21.48% for last 3 years.
– has high debtors of 243.92 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 17.37 and is trading at 16.0. 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
