Mehabe score: 2 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
VMS Industries in the business of ship breaking as well as trading in Ferrous and Non-Ferrous metals.Site:533427Main Symbol:VMS
Stock trades at 14.6, below its 50dma 15.0. However it is trading above its 200dma 11.22. 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 15.0.
The 52 week high is at 21.25 and the 52week low is at 6.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.44 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.52% over past five years.
– has a low return on equity of 2.64% for last 3 years.
-Promoters have pledged 53.62% of their holding.
-Earnings include an other income of Rs.4.46 Cr.
Competition
– The industry trades at a mean P/E of 25.8x. Jubilant Ingrevia trades at the industry’s max P/E of 172.98x. 533427 trades at a P/E of 22.6x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 533427 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is -1.3%. The max 1- month return was given by Jubilant Ingrevia: a return of 22.55 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 23.09 cr compared to Rs 22.76 cr for period ended Jun 2020, a rise of 1.4%
Operating Profits reported at Rs 1.46 cr for period ended Jun 2021 vis-vis 0.03 for period ended Jun 2020 .
Operating Margins expanded 619.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.75 compared to Rs 0.2 for previous quarter ended Mar 2021 and Rs 0.03 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 154.0 cr for period ended TTM vis-vis sales of Rs 153.0 cr for the period ended Mar 2021, a growth of 0.6%. The 3 year sales cagr stood at -4.7%.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 50.0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 28.0 cr for period ended Mar 2021 vis-vis Rs -41.0 cr for period ended Mar 2020
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 2.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 95% 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 -13% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 43.39% vis-vis 43.39% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.44 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.52% over past five years.
– has a low return on equity of 2.64% for last 3 years.
-Promoters have pledged 53.62% of their holding.
-Earnings include an other income of Rs.4.46 Cr.
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 below its 50 DMA 15.0 and is trading at 14.6. Shows a near term lack of buying interest.
