Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 7.
Description
National Fittings Limited is engages in the production of Piping components.Site:531289Main Symbol:NATFIT
Stock trades at 58.0, above its 50dma 53.78. It also trades above its 200dma 47.73. The stock remains bullish on techicals
The 52 week high is at 73.90 and the 52week low is at 23.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.99 times its book value
Weakness
– The company has delivered a poor sales growth of -0.40% over past five years.
-Promoter holding is low: 34.04%
– has a low return on equity of 3.63% for last 3 years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -31.51%
Competition
– The industry trades at a mean P/E of 21.6x. Sona BLW Precis. trades at the industry’s max P/E of 189.41x. 531289 trades at a P/E of 26.2x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 7.0. 531289 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 9.4%. The max 1- month return was given by Jayaswal Neco: a return of 37.19 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 18.74 cr compared to Rs 13.4 cr for period ended Sep 2020, a rise of 39.9%
Operating Profits reported at Rs 1.19 cr for period ended Sep 2021 vis-vis 1.54 for period ended Sep 2020 .
Operating Margins contracted -514.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.85 compared to Rs -0.34 for previous quarter ended Jun 2021 and Rs 0.91 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 56.59 cr for period ended TTM vis-vis sales of Rs 51.15 cr for the period ended Mar 2021, a growth of 9.6%. The 3 year sales cagr stood at -0.8%.
Operating margins shrank to 8.46% for period ended TTM vis-vis 9.27% for period ended Mar 2021, contraction of 81.0 bps.
Net Profit reported at Rs 1.95 cr for period ended TTM vis-vis sales of Rs 1.64 cr for the period ended Mar 2021, rising 15.9%.
Company reported a poor Net Profit CAGR of -13.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 8.85 cr for period ended Mar 2021 vis-vis Rs 1.81 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 115% on a 1 Year basis vis-vis a return of -27% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 618% vis-vis a compounded profit growth of -40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 65.95% vis-vis 65.95% for Jun 2021
Conclusion
– Stock is trading at 0.99 times its book value – The company has delivered a poor sales growth of -0.40% over past five years.
-Promoter holding is low: 34.04%
– has a low return on equity of 3.63% for last 3 years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -31.51%
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 53.78 and is trading at 58.0, thus bullish price action wise.
