Mehabe score: 2 G Factor: 3 Piotski Score: 3 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 3.
Description
Midas Infra Trade Ltd is engaged in dealing in share market. The Company offers services including business loan and leasing, and security brokers.Site:531192Main Symbol:MIDINFRA
Stock trades at 1.35, above its 50dma 1.17. However it is trading below its 200dma 1.47. The stock remains weak though short term bullish momentum supports price action. It needs to close above 1.47 for bullish price action to continue
The 52 week high is at 1.89 and the 52week low is at 0.51
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.99 times its book value
-Debtor days have improved from 35.98 to 27.99 days.
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 1.81%
– has a low return on equity of 0.63% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 25.1x. Titan Company trades at the industry’s max P/E of 160.11x. 531192 trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 531192 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 3.3%. The max 1- month return was given by Midas Infra Tra.: a return of 42.11 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.16 cr compared to Rs 13.3 cr for period ended Mar 2020, a fall of 98.8%
Company reported negative operating profit of Rs -1.04 cr for period ended Mar 2021. For same period last year, operating profit was -0.6
The EPS for Mar 2021 was Rs 0.03 compared to Rs -0.1 for previous quarter ended Dec 2020 and Rs -0.04 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 71.59 cr for period ended Mar 2021 vis-vis sales of Rs 117.23 cr for the period ended Mar 2020, a fall of 63.8%. The 3 year sales cagr stood at 21.1%.
Operating margins shrank to -3.2% for period ended Mar 2021 vis-vis 1.12% for period ended Mar 2020, contraction of 432.0 bps.
Net Profit reported at Rs -1.48 cr for period ended Mar 2021 vis-vis sales of Rs 0.36 cr for the period ended Mar 2020, falling 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -9.0% compared to 1.0% over the last 3 Years. – The stock has given a return of -22% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -39% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is -511% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 97.71% vis-vis 90.92% for Dec 2020
Conclusion
– Stock is trading at 0.99 times its book value
-Debtor days have improved from 35.98 to 27.99 days. – has low interest coverage ratio.
-Promoter holding is low: 1.81%
– has a low return on equity of 0.63% for last 3 years.
– might be capitalizing the interest cost
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 1.17 and is trading at 1.35 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
