Mehabe score: 3 G Factor: 2 Piotski Score: 7 The stock has a rating OBSERVE & 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 2 and Piotski score of 7.
Description
Sunil Agro Foods is engaged in the business of Manufacture of grain mill products.Site:530953
Market Cap:
Rs 17.6 cr
Price:
58.8
Trading pe:
22.9x
Book-value:
46.8/share
Div yield:
0.00 %
Earning yield:
8.18%
Face-value:
10.0/share
52week high:
63.50
52week low:
29.05
Technical Analysis
Stock trades at 58.8, above its 50dma 42.95. It also trades above its 200dma 37.57. The stock remains bullish on techicals
The 52 week high is at 63.50 and the 52week low is at 29.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 7.09% over past five years.
– has a low return on equity of 4.10% for last 3 years.
Competition
– The industry trades at a mean P/E of 42.7x. Hindustan Foods trades at the industry’s max P/E of 117.74x. 530953 trades at a P/E of 22.9x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. 530953 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 7.8%. The max 1- month return was given by Sunil Agro Foods: a return of 63.56 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 38.98 cr compared to Rs 31.71 cr for period ended Mar 2020, a rise of 22.9%
Operating Profits reported at Rs 1.12 cr for period ended Mar 2021 vis-vis 0.86 for period ended Mar 2020 .
Operating Margins expanded 16.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.6 compared to Rs 0.5 for previous quarter ended Dec 2020 and Rs 0.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 155.0 cr for period ended Mar 2021 vis-vis sales of Rs 139.0 cr for the period ended Mar 2020, a healthy growth of 10.3%. The 3 year sales cagr stood at 3.0%.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 cr for the period ended Mar 2020, rising 100.0%.
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 69% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 67% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.33% vis-vis 1.33% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.37% vis-vis 26.37% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 7.09% over past five years.
– has a low return on equity of 4.10% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 42.95 and is trading at 58.8 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
