Mehabe score: 4 G Factor: 3 Piotski Score: 6 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 6.
Description
Coromandel Engineering Company Ltd is a part of Murugappa Group and was incorporated in 1947. It is engaged in the field of Construction and Property Development #Site:533167Main Symbol:COROENGG
Stock trades at 31.2, below its 50dma 33.36. However it is trading above its 200dma 28.73. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 33.36.
The 52 week high is at 43.00 and the 52week low is at 16.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 5.06 times its book value
– has low interest coverage ratio.
– has a low return on equity of -47.54% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 35.1x. Macrotech Devel. trades at the industry’s max P/E of 365.15x. 533167 trades at a P/E of x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 533167 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 20.3%. The max 1- month return was given by National Standar: a return of 141.53 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 26.59 cr compared to Rs 8.06 cr for period ended Jun 2020, a rise of 229.9%
Company reported negative operating profit of Rs -0.56 cr for period ended Jun 2021. For same period last year, operating profit was -2.19
The EPS for Jun 2021 was Rs -0.76 compared to Rs 0.76 for previous quarter ended Mar 2021 and Rs -1.44 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 127.0 cr for period ended TTM vis-vis sales of Rs 109.0 cr for the period ended Mar 2021, a healthy growth of 14.2%. The 3 year sales cagr stood at 40.3%.
Net Profit reported at Rs -6.0 cr for period ended TTM vis-vis sales of Rs -8.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 11.0 cr for period ended Mar 2021 vis-vis Rs -2.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 20% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 88% vis-vis a compounded sales growth of 49% over the last 3 Years. – The compounded profit growth on a TTM basis is -63% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.48% vis-vis 25.48% for Mar 2021
Conclusion
– is expected to give good quarter – Stock is trading at 5.06 times its book value
– has low interest coverage ratio.
– has a low return on equity of -47.54% for last 3 years.
-‘s cost of borrowing seems high
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 33.36 and is trading at 31.2. 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
