Mehabe score: 7 G Factor: 3 Piotski Score: 5 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 5.
Description
Uniroyal Industries is carrying on the business of manufacture and trading of garment accessories such as narrow fabric woven labels, printed labels, hang tags, plastic seals etc.Site:521226Main Symbol:UNIROYAL
Stock trades at 13.1, above its 50dma 11.16. It also trades above its 200dma 9.25. The stock remains bullish on techicals
The 52 week high is at 15.13 and the 52week low is at 4.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.63 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.19% over past five years.
– has a low return on equity of 2.07% for last 3 years.
-Debtor days have increased from 72.07 to 88.16 days.
Competition
– The industry trades at a mean P/E of 11.9x. Alok Industries trades at the industry’s max P/E of 115.21x. 521226 trades at a P/E of 5.75x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. 521226 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 20.0%. The max 1- month return was given by Raghuvir Synth: a return of 164.88 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 25.55 cr compared to Rs 17.0 cr for period ended Sep 2020, a rise of 50.3%
Operating Profits reported at Rs 1.69 cr for period ended Sep 2021 vis-vis 0.75 for period ended Sep 2020 .
Operating Margins expanded 220.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.79 compared to Rs 0.12 for previous quarter ended Jun 2021 and Rs -0.37 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 91.57 cr for period ended TTM vis-vis sales of Rs 66.66 cr for the period ended Mar 2021, a healthy growth of 27.2%. The 3 year sales cagr stood at 5.9%.
Operating margins expanded to 6.59% for period ended TTM vis-vis 5.19% for period ended Mar 2021, expansion of 140.0 bps.
Net Profit reported at Rs 1.89 cr for period ended TTM vis-vis sales of Rs -0.9 cr for the period ended Mar 2021, rising 147.6%.
Company recorded a healthy Net Profit CAGR of 17.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 4.02 cr for period ended Mar 2021 vis-vis Rs 3.7 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 -5.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 156% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 64% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 204% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 45.93% vis-vis 45.95% for Jun 2021
Conclusion
– Stock is trading at 0.63 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.19% over past five years.
– has a low return on equity of 2.07% for last 3 years.
-Debtor days have increased from 72.07 to 88.16 days.
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 11.16 and is trading at 13.1 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
