Mehabe score: 4 G Factor: 3 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 3 and Piotski score of 3.
Description
Monnet Project Developers engages in the infrastructure business.Site:532723Main Symbol:MPDL
Stock trades at 13.8, above its 50dma 11.48. It also trades above its 200dma 10.32. The stock remains bullish on techicals
The 52 week high is at 15.00 and the 52week low is at 7.58
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.19 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of -3.27% for last 3 years.
Competition
– The industry trades at a mean P/E of 11.4x. Bannari Amm.Sug. trades at the industry’s max P/E of 36.7x. 532723 trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 532723 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -2.4%. The max 1- month return was given by MPDL Ltd: a return of 6.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.35 cr compared to Rs 0.13 cr for period ended Jun 2020, a rise of 2476.9%
Company reported negative operating profit of Rs -0.26 cr for period ended Jun 2021. For same period last year, operating profit was -0.22
The EPS for Jun 2021 was Rs -0.04 compared to Rs 0.49 for previous quarter ended Mar 2021 and Rs 0.59 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.3 cr for period ended TTM vis-vis sales of Rs 3.08 cr for the period ended Mar 2021, a healthy growth of 51.1%.
Operating margins expanded to -30.63% for period ended TTM vis-vis -50.32% for period ended Mar 2021, expansion of 1969.0 bps.
Net Profit reported at Rs -1.51 cr for period ended TTM vis-vis sales of Rs -1.03 cr for the period ended Mar 2021, 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 stock has given a return of 44% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -46% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -23% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 19.15% vis-vis 19.93% for Jun 2021
Conclusion
– Stock is trading at 0.19 times its book value – has low interest coverage ratio.
– has a low return on equity of -3.27% 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 11.48 and is trading at 13.8 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
