Mehabe score: 7 G Factor: 2 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 2 and Piotski score of 5.
Description
Suraj Industries is yet not engaged in any manufacturing business but is in the process of re-commencing its business activities.Site:526211Main Symbol:SURJIND
Stock trades at 20.2, above its 50dma 5.13. It also trades above its 200dma 2.53. The stock remains bullish on techicals
The 52 week high is at 10.77 and the 52week low is at 1.23
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 53.03 times its book value
– might be capitalizing the interest cost
– has high debtors of 162.92 days.
Competition
– The industry trades at a mean P/E of 28.3x. Manorama Indust. trades at the industry’s max P/E of 127.84x. 526211 trades at a P/E of 38.9x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 526211 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 24.6%. The max 1- month return was given by Suraj Industries: a return of 150.99 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 14.96 cr compared to Rs 0.39 cr for period ended Sep 2020, a rise of 3735.9%
Company reported operating profit of Rs 1.01 cr for period ended Sep 2021, operating profit margin at 6.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.95 compared to Rs 0.03 for previous quarter ended Jun 2021 and Rs -0.11 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 24.49 cr for period ended TTM vis-vis sales of Rs 6.99 cr for the period ended Mar 2021, a healthy growth of 71.5%. The 3 year sales cagr stood at 206.6%.
Operating margins expanded to 4.9% for period ended TTM vis-vis 1.43% for period ended Mar 2021, expansion of 347.0 bps.
Net Profit reported at Rs 1.35 cr for period ended TTM vis-vis sales of Rs 0.37 cr for the period ended Mar 2021, rising 72.6%.
Company recorded a healthy Net Profit CAGR of 71.0% 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 -0.11 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 1545% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 1140% vis-vis a compounded sales growth of 515% over the last 3 Years. – The compounded profit growth on a TTM basis is 236% vis-vis a compounded profit growth of 72% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 50.19% vis-vis 50.19% for Jun 2021
Conclusion
– – Stock is trading at 53.03 times its book value
– might be capitalizing the interest cost
– has high debtors of 162.92 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 5.13 and is trading at 20.2 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
