Mehabe score: 4 G Factor: 5 Piotski Score: 4 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 5 and Piotski score of 4.
Description
Sir Shadi Lal Enterprises is engaged in Sugar business and Distilery Business. Sugar businesses primarily comprise manufacture of Sugar. Distillery business primarily comprises manufacture of Sprit and Alcohol.Site:532879Main Symbol:SSLEL
Stock trades at 132.0, above its 50dma 76.15. It also trades above its 200dma 53.89. The stock remains bullish on techicals
The 52 week high is at 126.05 and the 52week low is at 32.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.21 times its book value
Weakness
– has low interest coverage ratio.
-Earnings include an other income of Rs.2.15 Cr.
Competition
– The industry trades at a mean P/E of 13.6x. Bannari Amm.Sug. trades at the industry’s max P/E of 27.01x. 532879 trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. 532879 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 2.6%. The max 1- month return was given by Sir Shadi Lal: a return of 47.88 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 120.48 cr compared to Rs 172.64 cr for period ended Jun 2020, a fall of 30.2%
Operating Profits reported at Rs 4.68 cr for period ended Jun 2021 vis-vis 7.41 for period ended Jun 2020 .
Operating Margins contracted -40.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -0.1 compared to Rs 40.8 for previous quarter ended Mar 2021 and Rs 3.28 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 497.0 cr for period ended TTM vis-vis sales of Rs 549.0 cr for the period ended Mar 2021, a fall of 10.5%. The 3 year sales cagr stood at 10.2%.
Net Profit reported at Rs -16.0 cr for period ended TTM vis-vis sales of Rs -14.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -12.0% compared to 0% over the last 3 Years. – The stock has given a return of 253% on a 1 Year basis vis-vis a return of 56% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -578% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.74% vis-vis 36.74% for Mar 2021
Conclusion
– Stock is trading at 0.21 times its book value – has low interest coverage ratio.
-Earnings include an other income of Rs.2.15 Cr.
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 76.15 and is trading at 132.0 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
