Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 3.
Description
Navkar Builders engages in manufacturing and supplying ready mix concrete for the construction industry.Site:531494Main Symbol:NAVBLDR
Stock trades at 19.1, above its 50dma 14.83. It also trades above its 200dma 12.22. The stock remains bullish on techicals
The 52 week high is at 18.90 and the 52week low is at 6.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.49 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -11.69% over past five years.
-Promoter holding is low: 35.06%
– has a low return on equity of 2.99% for last 3 years.
– has high debtors of 292.26 days.
-Promoter holding has decreased over last 3 years: -4.88%
Competition
– The industry trades at a mean P/E of 11.8x. BIGBLOC Const. trades at the industry’s max P/E of 58.04x. 531494 trades at a P/E of x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 8.0. 531494 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by BIGBLOC Const.: a return of 11.2 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3.51 cr compared to Rs 2.15 cr for period ended Mar 2020, a rise of 63.3%
Company reported operating profit of Rs 0.25 cr for period ended Mar 2021, operating profit margin at 7.1 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.25 compared to Rs -0.05 for previous quarter ended Dec 2020 and Rs -0.93 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7.43 cr for period ended Mar 2021 vis-vis sales of Rs 44.46 cr for the period ended Mar 2020, a fall of 498.4%. The 3 year sales cagr stood at -49.6%.
Operating margins expanded to 23.55% for period ended Mar 2021 vis-vis 3.35% for period ended Mar 2020, expansion of 2020.0 bps.
Net Profit reported at Rs 0.51 cr for period ended Mar 2021 vis-vis sales of Rs 0.39 cr for the period ended Mar 2020, rising 23.5%.
Company reported a poor Net Profit CAGR of -1.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -11.16 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 3.0% over the last 3 Years. – The stock has given a return of 125% on a 1 Year basis vis-vis a return of -4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -94% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is -135% vis-vis a compounded profit growth of -21% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 64.94% vis-vis 64.94% for Dec 2020
Conclusion
– Stock is trading at 0.49 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -11.69% over past five years.
-Promoter holding is low: 35.06%
– has a low return on equity of 2.99% for last 3 years.
– has high debtors of 292.26 days.
-Promoter holding has decreased over last 3 years: -4.88%
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 14.83 and is trading at 19.1 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
