Mehabe score: 5 G Factor: 5 Piotski Score: 3 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 5 and Piotski score of 3.
Description
Joonktolle Tea & Industries is engaged in the business of manufacturing of Tea, Coffee and Rubber.Site:538092
Market Cap:
Rs 56.7 cr
Price:
137.0
Trading pe:
x
Book-value:
283/share
Div yield:
0.00 %
Earning yield:
-1.75%
Face-value:
10.0/share
52week high:
146.00
52week low:
83.85
Technical Analysis
Stock trades at 137.0, above its 50dma 119.83. It also trades above its 200dma 112.01. The stock remains bullish on techicals
The 52 week high is at 146.00 and the 52week low is at 83.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.48 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.91% over past five years.
– has a low return on equity of -12.44% for last 3 years.
Competition
– The industry trades at a mean P/E of 14.9x. Tata Consumer trades at the industry’s max P/E of 75.05x. 538092 trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. 538092 has a G-Factor of 5 and Piotski scoreof 3.
– Average 1 month return for industry is 16.1%. The max 1- month return was given by Mcleod Russel: a return of 49.63 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 15.0 cr compared to Rs 7.0 cr for period ended Mar 2020, a rise of 114.3%
Company reported negative operating profit of Rs -8.0 cr for period ended Mar 2021. For same period last year, operating profit was -9.0
The EPS for Mar 2021 was Rs -28.58 compared to Rs -4.97 for previous quarter ended Dec 2020 and Rs -30.1 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 107.0 cr for period ended Mar 2021 vis-vis sales of Rs 92.0 cr for the period ended Mar 2020, a healthy growth of 14.0%. The 3 year sales cagr stood at 0.3%.
Operating margins expanded to 4.0% for period ended Mar 2021 vis-vis -13.0% for period ended Mar 2020, expansion of 1700.0 bps.
Net Profit reported at Rs -10.0 cr for period ended Mar 2021 vis-vis sales of Rs -24.0 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 -11.0 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 -19.0% compared to -12.0% over the last 3 Years. – The stock has given a return of 63% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 35% vis-vis a compounded profit growth of -32% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 19.33% vis-vis 19.33% for Dec 2020
Conclusion
– Stock is trading at 0.48 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.91% over past five years.
– has a low return on equity of -12.44% for last 3 years.
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 119.83 and is trading at 137.0 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
