Mehabe score: 6 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
Tiger Logistics (India) is a third-party logistics services provider. Its business covers international freight forwarding, supply chain management, project logistics defense logistics and cold chain logistics. Company is also customs house agent.(Source : 201903 Annual Report Page No:60)Site:536264Main Symbol:TIGERLOGS
Stock trades at 58.0, above its 50dma 52.71. It also trades above its 200dma 45.39. The stock remains bullish on techicals
The 52 week high is at 66.05 and the 52week low is at 32.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -7.91% over past five years.
– has a low return on equity of -10.39% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 29.5x. Mahindra Logis. trades at the industry’s max P/E of 89.47x. 536264 trades at a P/E of 33.5x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 536264 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 4.5%. The max 1- month return was given by Allcargo Logist.: a return of 25.13 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 81.61 cr compared to Rs 23.85 cr for period ended Jun 2020, a rise of 242.2%
Company reported operating profit of Rs 4.8 cr for period ended Jun 2021, operating profit margin at 5.9 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 4.02 compared to Rs 3.3 for previous quarter ended Mar 2021 and Rs -6.82 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 226.0 cr for period ended TTM vis-vis sales of Rs 168.0 cr for the period ended Mar 2021, a healthy growth of 25.7%. The 3 year sales cagr stood at -11.9%.
Operating margins expanded to 1.0% for period ended TTM vis-vis -6.0% for period ended Mar 2021, expansion of 700.0 bps.
Net Profit reported at Rs 1.0 cr for period ended TTM vis-vis sales of Rs -12.0 cr for the period ended Mar 2021, rising 1300.0%.
Company reported a poor Net Profit CAGR of -45.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 26.0 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -24.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of -30% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -20% over the last 3 Years. – The compounded profit growth on a TTM basis is 109% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.29% vis-vis 26.29% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – The company has delivered a poor sales growth of -7.91% over past five years.
– has a low return on equity of -10.39% for last 3 years.
– might be capitalizing the interest cost
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 52.71 and is trading at 58.0 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
