Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 7.
Description
Sheetal Diamonds Limited is a name well reckoned in the arena of manufacturing and exporting of exclusive diamond jewelry.Site:530525Main Symbol:SHEETAL
Stock trades at 31.4, above its 50dma 7.84. It also trades above its 200dma 4.51. The stock remains bullish on techicals
The 52 week high is at 15.65 and the 52week low is at 0.99
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 4.41 times its book value
-Promoter holding is low: 16.87%
– has a low return on equity of 0.20% for last 3 years.
-Debtor days have increased from 81.85 to 101.10 days.
Competition
– The industry trades at a mean P/E of 24.3x. Titan Company trades at the industry’s max P/E of 164.5x. 530525 trades at a P/E of 41.3x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. 530525 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 26.5%. The max 1- month return was given by Sheetal Diamonds: a return of 155.54 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 7.08 cr compared to Rs 6.11 cr for period ended Sep 2020, a rise of 15.9%
Company reported negative operating profit of Rs -0.44 cr for period ended Sep 2021. For same period last year, operating profit was 0.01
The EPS for Sep 2021 was Rs -0.8 compared to Rs 1.22 for previous quarter ended Jun 2021 and Rs 0.02 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 30.49 cr for period ended TTM vis-vis sales of Rs 22.6 cr for the period ended Mar 2021, a healthy growth of 25.9%. The 3 year sales cagr stood at 14.9%.
Operating margins shrank to 0.23% for period ended TTM vis-vis 0.84% for period ended Mar 2021, contraction of 61.0 bps.
Net Profit reported at Rs 0.38 cr for period ended TTM vis-vis sales of Rs 0.37 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.07 cr for period ended Mar 2021 vis-vis Rs 0.17 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 1560% on a 1 Year basis vis-vis a return of 85% over the last 3 Years. – The compounded sales growth on a TTM bassis is 77% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 74% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 82.5% vis-vis 82.5% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Stock is trading at 4.41 times its book value
-Promoter holding is low: 16.87%
– has a low return on equity of 0.20% for last 3 years.
-Debtor days have increased from 81.85 to 101.10 days.
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 7.84 and is trading at 31.4, thus bullish price action wise.
