Mehabe score: 2 G Factor: 3 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 3 and Piotski score of 5.
Description
Kisan Mouldings is engaged in a well-known brand in the PVC Pipes, Fittings and Allied Products.Site:530145Main Symbol:KISAN
Stock trades at 15.8, below its 50dma 15.95 and below its 200dma 16.08. The stock remains bearish on technicals
The 52 week high is at 24.60 and the 52week low is at 8.42
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.13 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -14.69% over past five years.
– has a low return on equity of -25.19% for last 3 years.
-Promoters have pledged 94.38% of their holding.
Competition
– The industry trades at a mean P/E of 27.7x. Responsive Ind trades at the industry’s max P/E of 171.12x. 530145 trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 530145 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 7.5%. The max 1- month return was given by Responsive Ind: a return of 17.12 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 81.0 cr compared to Rs 46.0 cr for period ended Sep 2020, a rise of 76.1%
Company reported negative operating profit of Rs -5.0 cr for period ended Sep 2021. For same period last year, operating profit was -2.0
The EPS for Sep 2021 was Rs -4.67 compared to Rs -3.52 for previous quarter ended Jun 2021 and Rs -3.04 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 271.0 cr for period ended TTM vis-vis sales of Rs 210.0 cr for the period ended Mar 2021, a healthy growth of 22.5%. The 3 year sales cagr stood at -17.9%.
Operating margins shrank to -6.0% for period ended TTM vis-vis -4.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs -56.0 cr for period ended TTM vis-vis sales of Rs -47.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -47.0% compared to -25.0% over the last 3 Years. – The stock has given a return of 79% on a 1 Year basis vis-vis a return of -41% over the last 3 Years. – The compounded sales growth on a TTM bassis is 51% vis-vis a compounded sales growth of -24% over the last 3 Years. – The compounded profit growth on a TTM basis is -20% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.4% vis-vis 0.4% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 55.87% vis-vis 55.87% for Jun 2021
Conclusion
– Stock is trading at 1.13 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -14.69% over past five years.
– has a low return on equity of -25.19% for last 3 years.
-Promoters have pledged 94.38% of their holding.
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 15.95 and is trading at 15.8. 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
