Mehabe score: 5 G Factor: 3 Piotski Score: 1 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 1.
Description
Andrew Yule & Company is engaged in Business of Engineering, Electrical and Tea.Site:526173
Market Cap:
Rs 1,504 cr
Price:
30.8
Trading pe:
70.4x
Book-value:
7.74/share
Div yield:
0.00 %
Earning yield:
1.51%
Face-value:
2.00/share
52week high:
33.90
52week low:
11.85
Technical Analysis
Stock trades at 30.8, above its 50dma 26.27. It also trades above its 200dma 20.15. The stock remains bullish on techicals
The 52 week high is at 33.90 and the 52week low is at 11.85
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.97 times its book value
-The company has delivered a poor sales growth of -4.25% over past five years.
– has a low return on equity of 0.27% for last 3 years.
-Earnings include an other income of Rs.35.79 Cr.
Competition
– The industry trades at a mean P/E of 34.6x. Andrew Yule & Co trades at the industry’s max P/E of 70.39x. 526173 trades at a P/E of 70.4x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. 526173 has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is 19.1%. The max 1- month return was given by Surana Telecom: a return of 36.27 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 58.0 cr compared to Rs 42.0 cr for period ended Mar 2020, a rise of 38.1%
Company reported negative operating profit of Rs -30.0 cr for period ended Mar 2021. For same period last year, operating profit was -35.0
The EPS for Mar 2021 was Rs -0.34 compared to Rs 0.26 for previous quarter ended Dec 2020 and Rs -0.62 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 331.0 cr for period ended Mar 2021 vis-vis sales of Rs 299.0 cr for the period ended Mar 2020, a growth of 9.7%. The 3 year sales cagr stood at -3.4%.
Operating margins expanded to -1.0% for period ended Mar 2021 vis-vis -13.0% for period ended Mar 2020, expansion of 1200.0 bps.
Net Profit reported at Rs 35.0 cr for period ended Mar 2021 vis-vis sales of Rs -22.0 cr for the period ended Mar 2020, rising 162.9%.
Company recorded a healthy Net Profit CAGR of 16.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -26.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -6.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 133% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 437% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 6.45% vis-vis 6.0% for Dec 2020
Conclusion
– – Stock is trading at 3.97 times its book value
-The company has delivered a poor sales growth of -4.25% over past five years.
– has a low return on equity of 0.27% for last 3 years.
-Earnings include an other income of Rs.35.79 Cr.
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 26.27 and is trading at 30.8 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
