Mehabe score: 2 G Factor: 3 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 3 and Piotski score of 4.
Description
CHL is engaged in Accomodation, Food and Beverages Services.(Source : 201903 Annual Report Page No: 17)Site:532992
Market Cap:
Rs 59.8 cr
Price:
10.9
Trading pe:
x
Book-value:
0.92/share
Div yield:
0.00 %
Earning yield:
-8.15%
Face-value:
2.00/share
52week high:
12.44
52week low:
5.29
Technical Analysis
Stock trades at 10.9, above its 50dma 9.34. It also trades above its 200dma 9.12. The stock remains bullish on techicals
The 52 week high is at 12.44 and the 52week low is at 5.29
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 11.82 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.04% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 80.6x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. 532992 trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. 532992 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 2.4%. The max 1- month return was given by CHL: a return of 10.43 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 11.19 cr compared to Rs 17.79 cr for period ended Mar 2020, a fall of 37.1%
Operating Profits reported at Rs 2.05 cr for period ended Mar 2021 vis-vis 0.01 for period ended Mar 2020 .
Operating Margins expanded 1826.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.63 compared to Rs -1.24 for previous quarter ended Dec 2020 and Rs -1.64 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 24.0 cr for period ended Mar 2021 vis-vis sales of Rs 86.0 cr for the period ended Mar 2020, a fall of 258.3%. The 3 year sales cagr stood at -34.7%.
Operating margins shrank to -21.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, contraction of 3300.0 bps.
Net Profit reported at Rs -31.0 cr for period ended Mar 2021 vis-vis sales of Rs -28.0 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 stock has given a return of 89% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -69% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -43% vis-vis a compounded profit growth of -6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.16% vis-vis 27.16% for Dec 2020
Conclusion
– – Stock is trading at 11.82 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.04% 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 9.34 and is trading at 10.9 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
