Mehabe score: 3 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
Shiva Cement is engaged in the business of manufacture and sale of cement, clinker and trading of allied products.(Source : 201903 Annual Report Page No:46)Site:532323Main Symbol:SHIVACEM
Stock trades at 38.0, above its 50dma 32.27. It also trades above its 200dma 23.61. The stock remains bullish on techicals
The 52 week high is at 40.45 and the 52week low is at 8.85
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.89% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 17.6x. Dalmia BharatLtd trades at the industry’s max P/E of 33.78x. 532323 trades at a P/E of x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 8.0. 532323 has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 16.9%. The max 1- month return was given by K C P: a return of 35.21 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.41 cr compared to Rs 8.24 cr for period ended Jun 2020, a fall of 58.6%
Company reported negative operating profit of Rs -3.65 cr for period ended Jun 2021. For same period last year, operating profit was -3.45
The EPS for Jun 2021 was Rs -0.27 compared to Rs -0.29 for previous quarter ended Mar 2021 and Rs -0.21 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 24.0 cr for period ended TTM vis-vis sales of Rs 28.0 cr for the period ended Mar 2021, a fall of 16.7%. The 3 year sales cagr stood at -6.1%.
Operating margins shrank to -47.0% for period ended TTM vis-vis -38.0% for period ended Mar 2021, contraction of 900.0 bps.
Net Profit reported at Rs -23.0 cr for period ended TTM vis-vis sales of Rs -22.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -8.0 cr for period ended Mar 2021 vis-vis Rs -11.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 310% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is -2% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 40.58% vis-vis 40.58% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.89% over past five years.
– might be capitalizing the interest cost
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 32.27 and is trading at 38.0 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
