Mehabe score: 4 G Factor: 6 Piotski Score: 7 The stock has a rating 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 6 and Piotski score of 7.
Description
VTM is engaged in the business of Fabrics.Site:532893Main Symbol:VTMLTD
Stock trades at 43.4, above its 50dma 32.84. It also trades above its 200dma 26.77. The stock remains bullish on techicals
The 52 week high is at 42.95 and the 52week low is at 17.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.80 times its book value
– has been maintaining a healthy dividend payout of 29.98%
Weakness
– The company has delivered a poor sales growth of -1.53% over past five years.
– has a low return on equity of 4.39% for last 3 years.
Competition
– The industry trades at a mean P/E of 19.0x. Alok Industries trades at the industry’s max P/E of 495.83x. 532893 trades at a P/E of 21.4x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 532893 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 24.6%. The max 1- month return was given by Vishal Fabrics: a return of 79.56 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 27.57 cr compared to Rs 14.69 cr for period ended Jun 2020, a rise of 87.7%
Operating Profits reported at Rs 3.88 cr for period ended Jun 2021 vis-vis 1.24 for period ended Jun 2020 .
Operating Margins expanded 563.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.66 compared to Rs 0.67 for previous quarter ended Mar 2021 and Rs 0.13 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 156.0 cr for period ended TTM vis-vis sales of Rs 143.0 cr for the period ended Mar 2021, a growth of 8.3%. The 3 year sales cagr stood at -0.8%.
Operating margins expanded to 12.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 12.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 16.7%.
Company recorded a Net Profit CAGR of 6.3% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 135% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of 16% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.0% vis-vis 25.0% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.80 times its book value
– has been maintaining a healthy dividend payout of 29.98% – The company has delivered a poor sales growth of -1.53% over past five years.
– has a low return on equity of 4.39% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 32.84 and is trading at 43.4, thus bullish price action wise.
