Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 3.
Description
TCI Industries is principally engaged in the rendering services by providing space for film shooting,(Source : 201903 Annual Report Page No: 48)Site:532262Main Symbol:TCIIND
Stock trades at 996.0, above its 50dma 976.98. It also trades above its 200dma 808.43. The stock remains bullish on techicals
The 52 week high is at 1259.85 and the 52week low is at 378.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 9.51 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.91% over past five years.
– has a low return on equity of -8.65% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 25.8x. Jubilant Ingrevia trades at the industry’s max P/E of 141.09x. 532262 trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. 532262 has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is -0.5%. The max 1- month return was given by Gujarat Gas: a return of 12.25 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.08 cr compared to Rs 0.63 cr for period ended Mar 2020, a fall of 87.3%
Company reported negative operating profit of Rs -0.45 cr for period ended Mar 2021. For same period last year, operating profit was 0.1
The EPS for Mar 2021 was Rs -5.13 compared to Rs -2.79 for previous quarter ended Dec 2020 and Rs 0.56 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.42 cr for period ended Mar 2021 vis-vis sales of Rs 2.28 cr for the period ended Mar 2020, a fall of 442.9%. The 3 year sales cagr stood at -37.5%.
Operating margins shrank to -345.24% for period ended Mar 2021 vis-vis -9.65% for period ended Mar 2020, contraction of 33559.0 bps.
Net Profit reported at Rs -1.56 cr for period ended Mar 2021 vis-vis sales of Rs -0.4 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -17.0% compared to -9.0% over the last 3 Years. – The stock has given a return of 99% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -82% vis-vis a compounded sales growth of -38% over the last 3 Years. – The compounded profit growth on a TTM basis is -290% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.03% vis-vis 25.03% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 9.51 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.91% over past five years.
– has a low return on equity of -8.65% for last 3 years.
-‘s cost of borrowing seems high
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 976.98 and is trading at 996.0 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
