Investment Memo: 531411

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Our Rating:

Mehabe score: 7
G Factor: 4
Piotski Score: 8
The stock has a rating . 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 8.

Description

Tuni Textile Mills is engaged in the business of manufacturing of Grey Fabrics (Cotton and Cotton Mixture Fabrics).Site: 531411Main Symbol: TUNITEX

Price Chart

Technical Analysis

• Stock trades at 1.58, above its 50dma 1.56. It also trades above its 200dma 0.9. The stock remains bullish on techicals
• The 52 week high is at 2.58 and the 52week low is at 0.24

Price Chart

P/E Chart

Sales and Margin

Strengths

– is expected to give good quarter

Weakness

– has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.59% over past five years.
-Promoter holding is low: 21.73%
– has a low return on equity of -0.08% for last 3 years.
– has high debtors of 166.08 days.

Competition

– The industry trades at a mean P/E of 14.3x. Alok Industries trades at the industry’s max P/E of 187.64x. 531411 trades at a P/E of 188.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 531411 has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by Faze Three: a return of 24.6 %

Quarterly Results

• Sales for period ended Jun 2021 is Rs 6.55 cr compared to Rs 0.11 cr for period ended Jun 2020, a rise of 5854.5%
• Company reported operating profit of Rs 0.31 cr for period ended Jun 2021, operating profit margin at 4.7 %.
• Operating profit was negative for the same period last year thus company has improved its margins this year

Profit & Loss Statement

Profit&Loss Comments

• Company reported sales of Rs 31.78 cr for period ended TTM vis-vis sales of Rs 25.34 cr for the period ended Mar 2021, a healthy growth of 20.3%. The 3 year sales cagr stood at -2.9%.
• Operating margins expanded to 5.57% for period ended TTM vis-vis 5.05% for period ended Mar 2021, expansion of 52.0 bps.
• Net Profit reported at Rs 0.45 cr for period ended TTM vis-vis sales of Rs 0.11 cr for the period ended Mar 2021, rising 75.6%.
• Company recorded a healthy Net Profit CAGR of 41.2% 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 1.34 cr for period ended Mar 2021 vis-vis Rs 0.69 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 1.0% compared to 0.0% over the last 3 Years.
– The stock has given a return of 485% on a 1 Year basis vis-vis a return of 61% over the last 3 Years.
– The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of -9% over the last 3 Years.
– The compounded profit growth on a TTM basis is 137% vis-vis a compounded profit growth of 29% over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 77.89% vis-vis 77.89% for Mar 2021

Conclusion

– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.59% over past five years.
-Promoter holding is low: 21.73%
– has a low return on equity of -0.08% for last 3 years.
– has high debtors of 166.08 days.

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