Mehabe score: 1 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
GKB Ophthalmics is engaged in manufacture and sale of unfinished ophthalmic lenses.Site:533212
Market Cap:
Rs 35.1 cr
Price:
69.6
Trading pe:
x
Book-value:
119/share
Div yield:
0.00 %
Earning yield:
-2.02%
Face-value:
10.0/share
52week high:
89.65
52week low:
45.00
Technical Analysis
Stock trades at 69.6, below its 50dma 70.56. However it is trading above its 200dma 67.52. 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 70.56.
The 52 week high is at 89.65 and the 52week low is at 45.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.58 times its book value
-Promoter holding has increased by 9.92% over last quarter.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.69% over past five years.
– has a low return on equity of -3.58% for last 3 years.
-Contingent liabilities of Rs.19.78 Cr.
-Earnings include an other income of Rs.1.00 Cr.
– has high debtors of 155.62 days.
Competition
– The industry trades at a mean P/E of 42.0x. Dabur India trades at the industry’s max P/E of 58.47x. 533212 trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. 533212 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 12.1%. The max 1- month return was given by Kaya Ltd: a return of 29.34 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 16.95 cr compared to Rs 15.73 cr for period ended Dec 2019, a rise of 7.8%
Operating Profits reported at Rs 1.14 cr for period ended Dec 2020 vis-vis 1.05 for period ended Dec 2019 .
Operating Margins expanded 5.1 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 0.16 compared to Rs -0.5 for previous quarter ended Sep 2020 and Rs 0.0 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 55.66 cr for period ended TTM vis-vis sales of Rs 58.45 cr for the period ended Mar 2020, a fall of 5.0%. The 3 year sales cagr stood at -10.6%.
Operating margins shrank to 3.05% for period ended TTM vis-vis 3.51% for period ended Mar 2020, contraction of 46.0 bps.
Net Profit reported at Rs -2.13 cr for period ended TTM vis-vis sales of Rs -1.84 cr for the period ended Mar 2020, 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 stock has given a return of 7% on a 1 Year basis vis-vis a return of -25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is -752% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.98% vis-vis 1.98% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 38.19% vis-vis 48.1% for Dec 2020
Conclusion
– Stock is trading at 0.58 times its book value
-Promoter holding has increased by 9.92% over last quarter. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.69% over past five years.
– has a low return on equity of -3.58% for last 3 years.
-Contingent liabilities of Rs.19.78 Cr.
-Earnings include an other income of Rs.1.00 Cr.
– has high debtors of 155.62 days.
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 70.56 and is trading at 69.6. 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
