Mehabe score: 2 G Factor: 1 Piotski Score: 5 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 1 and Piotski score of 5.
Description
Martin Burn Ltd is engaged in Real Estate Development and Works Contract Job.Site:523566Main Symbol:MARBU
Stock trades at 36.0, below its 50dma 37.72. However it is trading above its 200dma 32.32. 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 37.72.
The 52 week high is at 46.85 and the 52week low is at 18.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.40 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -41.01% over past five years.
– has a low return on equity of 1.85% for last 3 years.
– has high debtors of 527.22 days.
Competition
– The industry trades at a mean P/E of 38.3x. Phoenix Mills trades at the industry’s max P/E of 266.11x. 523566 trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. 523566 has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 4.5%. The max 1- month return was given by Oberoi Realty: a return of 15.41 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.07 cr compared to Rs 0.06 cr for period ended Jun 2020, a rise of 16.7%
Company reported negative operating profit of Rs -0.49 cr for period ended Jun 2021. For same period last year, operating profit was -0.09
The EPS for Jun 2021 was Rs 0.27 compared to Rs -0.21 for previous quarter ended Mar 2021 and Rs 0.85 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.28 cr for period ended TTM vis-vis sales of Rs 0.27 cr for the period ended Mar 2021, a growth of 3.6%. The 3 year sales cagr stood at -12.6%.
Operating margins shrank to -1275.0% for period ended TTM vis-vis -1174.07% for period ended Mar 2021, contraction of 10093.0 bps.
Net Profit reported at Rs -0.2 cr for period ended TTM vis-vis sales of Rs 0.1 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.23 cr for period ended Mar 2021 vis-vis Rs -4.66 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 45% 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 -58% vis-vis a compounded sales growth of -46% over the last 3 Years. – The compounded profit growth on a TTM basis is -132% 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 34.01% vis-vis 34.01% for Mar 2021
Conclusion
– Stock is trading at 0.40 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -41.01% over past five years.
– has a low return on equity of 1.85% for last 3 years.
– has high debtors of 527.22 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 37.72 and is trading at 36.0. 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
