Mehabe score: 5 G Factor: 6 Piotski Score: 7 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 7.
Description
Ador Fontech is a Frontrunner Organisation That Operates on the Philosophy of Partnering With Its Clients In Recommending and Implementing Value-Added Reclamation, Fusion, Surfacing, Spraying and Environmental Solutions.(Source : 201903 Annual Report Page No: 01)Site:530431Main Symbol:ADORFO
Stock trades at 78.0, above its 50dma 55.22. It also trades above its 200dma 43.76. The stock remains bullish on techicals
The 52 week high is at 79.40 and the 52week low is at 29.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 67.92%
Weakness
– Stock is trading at 2.50 times its book value
-The company has delivered a poor sales growth of 0.99% over past five years.
-Promoter holding is low: 39.28%
– has a low return on equity of 9.60% for last 3 years.
Competition
– The industry trades at a mean P/E of 39.1x. Ador Welding trades at the industry’s max P/E of 84.54x. 530431 trades at a P/E of 27.2x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 530431 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 21.6%. The max 1- month return was given by GEE: a return of 64.05 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 47.44 cr compared to Rs 34.17 cr for period ended Mar 2020, a rise of 38.8%
Company reported operating profit of Rs 7.61 cr for period ended Mar 2021, operating profit margin at 16.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 1.33 compared to Rs 0.96 for previous quarter ended Dec 2020 and Rs -0.15 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 150.0 cr for period ended Mar 2021 vis-vis sales of Rs 177.0 cr for the period ended Mar 2020, a fall of 18.0%. The 3 year sales cagr stood at -0.4%.
Operating margins expanded to 12.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020, rising 10.0%.
Company recorded a healthy Net Profit CAGR of 12.6% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 156% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -16% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 15% vis-vis a compounded profit growth of 15% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.86% vis-vis 4.87% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 53.56% vis-vis 53.37% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 67.92% – Stock is trading at 2.50 times its book value
-The company has delivered a poor sales growth of 0.99% over past five years.
-Promoter holding is low: 39.28%
– has a low return on equity of 9.60% for last 3 years.
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 55.22 and is trading at 78.0, thus bullish price action wise.
