Mehabe score: 3 G Factor: 6 Piotski Score: 6 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 6.
Description
Swarnsarita Gems is engaged in the business of manufacturing, sale and trading in the gold Jewellery and precious stone studded Jewellery.(Source : 201903 Annual Report Page No:83)Site:526365
Market Cap:
Rs 29.3 cr
Price:
14.0
Trading pe:
5.34x
Book-value:
47.0/share
Div yield:
0.00 %
Earning yield:
10.93%
Face-value:
10.0/share
52week high:
14.99
52week low:
5.50
Technical Analysis
Stock trades at 14.0, above its 50dma 12.95. It also trades above its 200dma 11.12. The stock remains bullish on techicals
The 52 week high is at 14.99 and the 52week low is at 5.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.30 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.18% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 59.78% of their holding.
-Earnings include an other income of Rs.4.12 Cr.
Competition
– The industry trades at a mean P/E of 22.6x. Titan Company trades at the industry’s max P/E of 162.64x. 526365 trades at a P/E of 5.34x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 526365 has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 9.8%. The max 1- month return was given by Kalyan Jewellers: a return of 28.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 209.49 cr compared to Rs 106.21 cr for period ended Mar 2020, a rise of 97.2%
Operating Profits reported at Rs 2.92 cr for period ended Mar 2021 vis-vis 0.85 for period ended Mar 2020 .
Operating Margins expanded 59.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.95 compared to Rs 0.96 for previous quarter ended Dec 2020 and Rs 0.12 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 576.0 cr for period ended Mar 2021 vis-vis sales of Rs 559.0 cr for the period ended Mar 2020, a growth of 3.0%. The 3 year sales cagr stood at 5.8%.
Operating margins expanded to 2.0% for period ended Mar 2021 vis-vis 1.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020,
Company recorded a Net Profit CAGR of 7.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 6.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 98% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 21% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 49.81% vis-vis 50.45% for Dec 2020
Conclusion
– Stock is trading at 0.30 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.18% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 59.78% of their holding.
-Earnings include an other income of Rs.4.12 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 12.95 and is trading at 14.0, thus bullish price action wise.
