Mehabe score: 4 G Factor: 3 Piotski Score: 6 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 3 and Piotski score of 6.
Description
Binny Mills is engaged in the business of warehousing and storage, and trading of textile materials.Site:535620
Market Cap:
Rs 26.1 cr
Price:
81.8
Trading pe:
1.17x
Book-value:
-83.9/share
Div yield:
0.00 %
Earning yield:
21.94%
Face-value:
10.0/share
52week high:
108.35
52week low:
38.15
Technical Analysis
Stock trades at 81.8, above its 50dma 73.83. It also trades above its 200dma 64.94. The stock remains bullish on techicals
The 52 week high is at 108.35 and the 52week low is at 38.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 105.31% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of -4.81% over past five years.
-Earnings include an other income of Rs.34.03 Cr.
-Debtor days have increased from 30.85 to 42.14 days.
Competition
– The industry trades at a mean P/E of 41.0x. 3M India trades at the industry’s max P/E of 189.17x. 535620 trades at a P/E of 1.17x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. 535620 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 10.4%. The max 1- month return was given by Redington India: a return of 45.86 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.0 cr compared to Rs 1.78 cr for period ended Mar 2020, a rise of 12.4%
Operating Profits reported at Rs 0.51 cr for period ended Mar 2021 vis-vis 0.45 for period ended Mar 2020 .
Operating Margins expanded 21.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -8.12 compared to Rs -9.28 for previous quarter ended Dec 2020 and Rs -10.51 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020, a fall of 50.0%. The 3 year sales cagr stood at -5.0%.
Operating margins expanded to 34.0% for period ended Mar 2021 vis-vis 27.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 22.0 cr for period ended Mar 2021 vis-vis sales of Rs -13.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 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 71% on a 1 Year basis vis-vis a return of -24% over the last 3 Years. – The compounded sales growth on a TTM bassis is -32% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 268% vis-vis a compounded profit growth of 52% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 20.67% vis-vis 20.67% for Dec 2020
Conclusion
– has delivered good profit growth of 105.31% CAGR over last 5 years – The company has delivered a poor sales growth of -4.81% over past five years.
-Earnings include an other income of Rs.34.03 Cr.
-Debtor days have increased from 30.85 to 42.14 days.
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 73.83 and is trading at 81.8 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
