Mehabe score: 2 G Factor: 0 Piotski Score: 5 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 0 and Piotski score of 5.
Description
Supremex Shine Steels is engaged in the business of Trading in Steels.Site:534733
Market Cap:
Rs 38.5 cr
Price:
12.2
Trading pe:
175.0x
Book-value:
1.17/share
Div yield:
0.00 %
Earning yield:
0.84%
Face-value:
1.00/share
52week high:
12.64
52week low:
0.92
Technical Analysis
Stock trades at 12.2, above its 50dma 8.07. It also trades above its 200dma 5.31. The stock remains bullish on techicals
The 52 week high is at 12.64 and the 52week low is at 0.92
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Debtor days have improved from 211.31 to 130.83 days.
Weakness
– Stock is trading at 10.42 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.33% for last 3 years.
-Promoter holding has decreased over last 3 years: -9.01%
Competition
– The industry trades at a mean P/E of 44.1x. 3M India trades at the industry’s max P/E of 193.32x. 534733 trades at a P/E of 175.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. 534733 has a G-Factor of 0 and Piotski scoreof 5.
– Average 1 month return for industry is 12.9%. The max 1- month return was given by Redington India: a return of 45.85 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.01 cr compared to Rs 5.16 cr for period ended Mar 2020, a fall of 99.8%
Company reported negative operating profit of Rs -0.17 cr for period ended Mar 2021. For same period last year, operating profit was -0.01
The EPS for Mar 2021 was Rs -0.03 compared to Rs 0.0 for previous quarter ended Dec 2020 and Rs 0.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.22 cr for period ended Mar 2021 vis-vis sales of Rs 15.01 cr for the period ended Mar 2020, a fall of 576.1%. The 3 year sales cagr stood at -13.7%.
Operating margins shrank to -6.31% for period ended Mar 2021 vis-vis -0.6% for period ended Mar 2020, contraction of 571.0 bps.
Net Profit reported at Rs 0.06 cr for period ended Mar 2021 vis-vis sales of Rs 0.15 cr for the period ended Mar 2020, falling 150.0%.
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 1064% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -41% vis-vis a compounded sales growth of 375% over the last 3 Years. – The compounded profit growth on a TTM basis is 214% 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 58.15% vis-vis 58.15% for Dec 2020
Conclusion
– is almost debt free.
-Debtor days have improved from 211.31 to 130.83 days. – Stock is trading at 10.42 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.33% for last 3 years.
-Promoter holding has decreased over last 3 years: -9.01%
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 8.07 and is trading at 12.2 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
