Mehabe score: 5 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
Sacheta Metals is one of the major manufacturers & exporters of Aluminium, Stainless and mild steel Houseware kitchenware Utensils – Casting – Sheet Coils – Circles, Non Stick Cookware – Pressure Cooker, Foil Chaquered sheet, PP Caps / Slug & other Houseware & also Stainless Steel Kitchenware in India.Site:531869Main Symbol:SACHEMT
Stock trades at 19.4, above its 50dma 17.63. It also trades above its 200dma 16.71. The stock remains bullish on techicals
The 52 week high is at 24.61 and the 52week low is at 13.76
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.11 times its book value
Weakness
– The company has delivered a poor sales growth of 10.83% over past five years.
– has a low return on equity of 5.86% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 17.8x. Arfin India trades at the industry’s max P/E of 27.1x. 531869 trades at a P/E of 17.3x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 531869 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 12.9%. The max 1- month return was given by MMP Industries: a return of 29.48 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 27.46 cr compared to Rs 12.82 cr for period ended Jun 2020, a rise of 114.2%
Operating Profits reported at Rs 0.95 cr for period ended Jun 2021 vis-vis 0.99 for period ended Jun 2020 .
Operating Margins contracted -426.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.23 compared to Rs 0.25 for previous quarter ended Mar 2021 and Rs 0.21 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 98.43 cr for period ended TTM vis-vis sales of Rs 83.79 cr for the period ended Mar 2021, a healthy growth of 14.9%. The 3 year sales cagr stood at 0.5%.
Operating margins shrank to 5.17% for period ended TTM vis-vis 5.76% for period ended Mar 2021, contraction of 59.0 bps.
Net Profit reported at Rs 2.18 cr for period ended TTM vis-vis sales of Rs 2.15 cr for the period ended Mar 2021, rising 1.4%.
Company recorded a Net Profit CAGR of 1.7% 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 13.91 cr for period ended Mar 2021 vis-vis Rs 0.6 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 7.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 35% on a 1 Year basis vis-vis a return of -26% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 68% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 33.42% vis-vis 33.42% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.11 times its book value – The company has delivered a poor sales growth of 10.83% over past five years.
– has a low return on equity of 5.86% for last 3 years.
– might be capitalizing the interest cost
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 17.63 and is trading at 19.4, thus bullish price action wise.
