Mehabe score: 2 G Factor: 1 Piotski Score: 5 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 5.
Description
Chartered Logistics Ltd. is a logistics company and a transport service provider. The Company offers services, such as road transport services, special warehousing services, cost and freight services, right from the point of origin till the final point of destination.Site:531977
Market Cap:
Rs 53.2 cr
Price:
5.36
Trading pe:
x
Book-value:
4.49/share
Div yield:
0.00 %
Earning yield:
4.29%
Face-value:
1.00/share
52week high:
6.25
52week low:
2.43
Technical Analysis
Stock trades at 5.36, above its 50dma 4.7. It also trades above its 200dma 3.89. The stock remains bullish on techicals
The 52 week high is at 6.25 and the 52week low is at 2.43
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.19 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.85% over past five years.
– has a low return on equity of 2.29% for last 3 years.
Competition
– The industry trades at a mean P/E of 31.1x. Mahindra Logis. trades at the industry’s max P/E of 135.07x. 531977 trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 6.0. 531977 has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Allcargo Logist.: a return of 21.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 39.39 cr compared to Rs 34.49 cr for period ended Mar 2020, a rise of 14.2%
Company reported negative operating profit of Rs -0.44 cr for period ended Mar 2021. For same period last year, operating profit was 0.34
The EPS for Mar 2021 was Rs -0.15 compared to Rs 0.03 for previous quarter ended Dec 2020 and Rs -0.1 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 131.0 cr for period ended Mar 2021 vis-vis sales of Rs 143.0 cr for the period ended Mar 2020, a fall of 9.2%. The 3 year sales cagr stood at -2.2%.
Operating margins shrank to 4.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs -2.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 2.0% over the last 3 Years. – The stock has given a return of 46% on a 1 Year basis vis-vis a return of -21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -12% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 0% vis-vis a compounded profit growth of -64% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 4.43% vis-vis 4.43% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 42.88% vis-vis 42.88% for Dec 2020
Conclusion
– Stock is trading at 1.19 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.85% over past five years.
– has a low return on equity of 2.29% for last 3 years.
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 4.7 and is trading at 5.36 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
