Mehabe score: 4 G Factor: 4 Piotski Score: 6 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 6.
Description
RR Metalmakers India engages in the wholesale trade of metal and metal ores in India. The company offers cold rolled steel coils and plates, hot rolled steel coils and plates, boiler quality steel plates, and chequered steel coils. It also trades in spices, cereals, and other specialty commodities; and operates as a cold storage lessor and refrigerating engineer. (Source : Company Web-Site)Site:531667Main Symbol:RRMETAL
Stock trades at 28.5, above its 50dma 26.92. It also trades above its 200dma 25.87. The stock remains bullish on techicals
The 52 week high is at 34.55 and the 52week low is at 19.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Debtor days have improved from 58.54 to 37.13 days.
Weakness
– Stock is trading at 2.75 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.20% for last 3 years.
Competition
– The industry trades at a mean P/E of 52.8x. 3M India trades at the industry’s max P/E of 181.98x. 531667 trades at a P/E of 10.4x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 531667 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 4.2%. The max 1- month return was given by Rain Industries: a return of 31.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 35.41 cr compared to Rs 34.99 cr for period ended Mar 2020, a rise of 1.2%
Operating Profits reported at Rs 4.78 cr for period ended Mar 2021 vis-vis 1.77 for period ended Mar 2020 .
Operating Margins expanded 844.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.5 compared to Rs -0.69 for previous quarter ended Dec 2020 and Rs 0.8 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 111.0 cr for period ended Mar 2021 vis-vis sales of Rs 121.0 cr for the period ended Mar 2020, a fall of 9.0%. The 3 year sales cagr stood at 8.9%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis -1.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 2.0 cr for period ended Mar 2021 vis-vis sales of Rs -4.0 cr for the period ended Mar 2020, rising 300.0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 33.0% compared to -8.0% over the last 3 Years. – The stock has given a return of -10% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 143% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 37.84% vis-vis 37.84% for Mar 2021
Conclusion
– has reduced debt.
-Debtor days have improved from 58.54 to 37.13 days. – Stock is trading at 2.75 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.20% for last 3 years.
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 26.92 and is trading at 28.5, thus bullish price action wise.
