Mehabe score: 3 G Factor: 3 Piotski Score: 4 The stock has a rating SELL. 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
Manjeera Constructions is in the business of property development, civil construction contracts, infrastructure projects development and Windmill Energy Production.(Source : 201903 Annual Report Page No:53)Site:533078
Market Cap:
Rs 37.4 cr
Price:
29.9
Trading pe:
x
Book-value:
13.0/share
Div yield:
0.00 %
Earning yield:
1.53%
Face-value:
10.0/share
52week high:
39.70
52week low:
23.75
Technical Analysis
Stock trades at 29.9, below its 50dma 33.3 and below its 200dma 47.21. The stock remains bearish on technicals
The 52 week high is at 39.70 and the 52week low is at 23.75
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
– has a low return on equity of -19.82% for last 3 years.
-Contingent liabilities of Rs.332.90 Cr.
Competition
– The industry trades at a mean P/E of 33.7x. Macrotech Devel. trades at the industry’s max P/E of 19.08x. 533078 trades at a P/E of x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 6.0. 533078 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 14.6%. The max 1- month return was given by JP Associates: a return of 45.93 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 20.37 cr compared to Rs 42.38 cr for period ended Dec 2019, a fall of 51.9%
Company reported operating profit of Rs 6.61 cr for period ended Dec 2020, operating profit margin at 32.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Dec 2020 was Rs -4.6 compared to Rs -7.86 for previous quarter ended Sep 2020 and Rs -12.87 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 115.0 cr for period ended TTM vis-vis sales of Rs 235.0 cr for the period ended Mar 2020, a fall of 104.3%. The 3 year sales cagr stood at -20.9%.
Operating margins expanded to 8.0% for period ended TTM vis-vis 3.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs -37.0 cr for period ended TTM vis-vis sales of Rs -46.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 71.0 cr for period ended Mar 2020 vis-vis Rs 44.0 cr for period ended Mar 2019
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 -76.0% compared to -20.0% over the last 3 Years. – The stock has given a return of -23% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -50% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 2% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.9% vis-vis 25.9% for Dec 2020
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of -19.82% for last 3 years.
-Contingent liabilities of Rs.332.90 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 33.3 and is trading at 29.9. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
