Mehabe score: 6 G Factor: 6 Piotski Score: 7 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 6 and Piotski score of 7.
Description
Sri Nachammai Cotton Mills is engaged in the business of Manufcture and Sale of Cotton Yarn.Site:521234Main Symbol:SRINACHA
Stock trades at 58.0, above its 50dma 40.53. It also trades above its 200dma 28.79. The stock remains bullish on techicals
The 52 week high is at 67.90 and the 52week low is at 10.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.77 times its book value
– is expected to give good quarter
-Debtor days have improved from 33.39 to 22.58 days.
Weakness
– The company has delivered a poor sales growth of 6.78% over past five years.
– has a low return on equity of -0.41% for last 3 years.
-Contingent liabilities of Rs.21.82 Cr.
Competition
– The industry trades at a mean P/E of 11.4x. Arvind Ltd trades at the industry’s max P/E of 24.88x. 521234 trades at a P/E of 6.56x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. 521234 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 15.3%. The max 1- month return was given by Sri Nacha. Cott.: a return of 32.27 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 54.21 cr compared to Rs 45.96 cr for period ended Sep 2020, a rise of 18.0%
Operating Profits reported at Rs 1.97 cr for period ended Sep 2021 vis-vis 1.59 for period ended Sep 2020 .
Operating Margins expanded 17.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.09 compared to Rs 1.16 for previous quarter ended Jun 2021 and Rs 0.23 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 183.0 cr for period ended TTM vis-vis sales of Rs 158.0 cr for the period ended Mar 2021, a healthy growth of 13.7%. The 3 year sales cagr stood at 4.6%.
Operating margins expanded to 6.0% for period ended TTM vis-vis 4.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 9.0 cr for period ended Mar 2021 vis-vis Rs 1.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 364% on a 1 Year basis vis-vis a return of 57% over the last 3 Years. – The compounded sales growth on a TTM bassis is 42% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 200% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 44.58% vis-vis 44.58% for Jun 2021
Conclusion
– Stock is trading at 0.77 times its book value
– is expected to give good quarter
-Debtor days have improved from 33.39 to 22.58 days. – The company has delivered a poor sales growth of 6.78% over past five years.
– has a low return on equity of -0.41% for last 3 years.
-Contingent liabilities of Rs.21.82 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 40.53 and is trading at 58.0, thus bullish price action wise.
