Mehabe score: 3 G Factor: 3 Piotski Score: 2 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 3 and Piotski score of 2.
Description
Pranavaditya Spinning Mills is a Spinning Unit engaged in the manufacture of cotton yarn.Site:531172Main Symbol:PRANAVSP
Stock trades at 19.8, above its 50dma 16.42. It also trades above its 200dma 15.93. The stock remains bullish on techicals
The 52 week high is at 19.90 and the 52week low is at 9.16
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.00% over past five years.
– has a low return on equity of -6.20% for last 3 years.
Competition
– The industry trades at a mean P/E of 17.7x. Arvind Ltd trades at the industry’s max P/E of 1243.24x. 531172 trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. 531172 has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 36.4%. The max 1- month return was given by Nitin Spinners: a return of 49.92 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.33 cr compared to Rs 2.04 cr for period ended Jun 2020, a fall of 83.8%
Company reported negative operating profit of Rs -0.11 cr for period ended Jun 2021. For same period last year, operating profit was -1.32
The EPS for Jun 2021 was Rs -0.16 compared to Rs -0.24 for previous quarter ended Mar 2021 and Rs -0.62 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.29 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, a fall of 39.9%. The 3 year sales cagr stood at -62.6%.
Operating margins expanded to -49.65% for period ended TTM vis-vis -55.67% for period ended Mar 2021, expansion of 602.0 bps.
Net Profit reported at Rs -5.0 cr for period ended TTM vis-vis sales of Rs -5.91 cr for the period ended Mar 2021, 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 stock has given a return of 73% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -91% vis-vis a compounded sales growth of -56% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of -15% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.47% vis-vis 25.47% for Mar 2021
Conclusion
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.00% over past five years.
– has a low return on equity of -6.20% 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 16.42 and is trading at 19.8 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
