Mehabe score: 2 G Factor: 6 Piotski Score: 5 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 5.
Description
Terai Tea Co primarily engaged in production, distribution and trading of tea and other agricultural merchandise.Site:530533Main Symbol:TERAI
Stock trades at 61.4, above its 50dma 55.31. It also trades above its 200dma 46.74. The stock remains bullish on techicals
The 52 week high is at 72.45 and the 52week low is at 29.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.32 times its book value
– has delivered good profit growth of 54.14% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.42% over past five years.
– has a low return on equity of 3.65% for last 3 years.
-Earnings include an other income of Rs.17.14 Cr.
Competition
– The industry trades at a mean P/E of 10.3x. Tata Consumer trades at the industry’s max P/E of 100.84x. 530533 trades at a P/E of 5.4x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 530533 has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is -4.0%. The max 1- month return was given by Tata Consumer: a return of 9.91 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.98 cr compared to Rs 15.0 cr for period ended Mar 2020, a fall of 33.5%
Company reported negative operating profit of Rs -8.62 cr for period ended Mar 2021. For same period last year, operating profit was -11.05
The EPS for Mar 2021 was Rs 1.05 compared to Rs -11.6 for previous quarter ended Dec 2020 and Rs -0.06 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 71.45 cr for period ended Mar 2021 vis-vis sales of Rs 118.66 cr for the period ended Mar 2020, a fall of 66.1%. The 3 year sales cagr stood at -17.9%.
Operating margins shrank to -9.15% for period ended Mar 2021 vis-vis -4.42% for period ended Mar 2020, contraction of 473.0 bps.
Net Profit reported at Rs 7.83 cr for period ended Mar 2021 vis-vis sales of Rs 2.75 cr for the period ended Mar 2020, rising 0%.
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 4.0% over the last 3 Years. – The stock has given a return of 74% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -40% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is 185% vis-vis a compounded profit growth of 364% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.82% vis-vis 25.82% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.32 times its book value
– has delivered good profit growth of 54.14% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.42% over past five years.
– has a low return on equity of 3.65% for last 3 years.
-Earnings include an other income of Rs.17.14 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 55.31 and is trading at 61.4, thus bullish price action wise.
