Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Solitaire Machine Tools is engaged in the business of manufacturing and rebuilding Precision Centerless Grinders.Site:522152
Market Cap:
Rs 17.3 cr
Price:
38.1
Trading pe:
12.2x
Book-value:
33.6/share
Div yield:
2.62 %
Earning yield:
12.11%
Face-value:
10.0/share
52week high:
43.90
52week low:
17.00
Technical Analysis
Stock trades at 38.1, above its 50dma 30.52. It also trades above its 200dma 25.7. The stock remains bullish on techicals
The 52 week high is at 43.90 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.13 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 40.66%
Weakness
– The company has delivered a poor sales growth of 2.85% over past five years.
– has a low return on equity of 7.86% for last 3 years.
-Debtor days have increased from 43.81 to 61.17 days.
Competition
– The industry trades at a mean P/E of 20.0x. HLE Glascoat trades at the industry’s max P/E of 92.57x. 522152 trades at a P/E of 12.2x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 522152 has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Solitaire Mach.: a return of 50.89 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.17 cr compared to Rs 3.08 cr for period ended Mar 2020, a rise of 132.8%
Operating Profits reported at Rs 0.99 cr for period ended Mar 2021 vis-vis 0.3 for period ended Mar 2020 .
Operating Margins expanded 406.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.62 compared to Rs 0.15 for previous quarter ended Dec 2020 and Rs -0.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.02 cr for period ended Mar 2021 vis-vis sales of Rs 12.26 cr for the period ended Mar 2020, a healthy growth of 32.0%. The 3 year sales cagr stood at 3.3%.
Operating margins shrank to 13.54% for period ended Mar 2021 vis-vis 16.23% for period ended Mar 2020, contraction of 269.0 bps.
Net Profit reported at Rs 1.42 cr for period ended Mar 2021 vis-vis sales of Rs 0.66 cr for the period ended Mar 2020, rising 53.5%.
Company reported a poor Net Profit CAGR of -9.4% 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 2.37 cr for period ended Mar 2021 vis-vis Rs 0.99 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 10.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 91% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 47% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 115% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 51.0% vis-vis 54.69% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.13 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 40.66% – The company has delivered a poor sales growth of 2.85% over past five years.
– has a low return on equity of 7.86% for last 3 years.
-Debtor days have increased from 43.81 to 61.17 days.
