Mehabe score: 3 G Factor: 3 Piotski Score: 7 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 7.
Description
James Warren Tea is engaged in the business of Tea Production.Site:538564
Market Cap:
Rs 115 cr
Price:
220.0
Trading pe:
6.6x
Book-value:
269/share
Div yield:
0.00 %
Earning yield:
11.79%
Face-value:
10.0/share
52week high:
238.05
52week low:
74.50
Technical Analysis
Stock trades at 220.0, above its 50dma 163.42. It also trades above its 200dma 136.19. The stock remains bullish on techicals
The 52 week high is at 238.05 and the 52week low is at 74.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.82 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.42% over past five years.
– has a low return on equity of 1.23% for last 3 years.
-Earnings include an other income of Rs.19.00 Cr.
Competition
– The industry trades at a mean P/E of 15.2x. Tata Consumer trades at the industry’s max P/E of 79.0x. 538564 trades at a P/E of 6.6x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. 538564 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 19.7%. The max 1- month return was given by Mcleod Russel: a return of 50.29 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 18.0 cr compared to Rs 11.0 cr for period ended Mar 2020, a rise of 63.6%
Company reported negative operating profit of Rs -22.0 cr for period ended Mar 2021. For same period last year, operating profit was -24.0
The EPS for Mar 2021 was Rs -37.44 compared to Rs -3.99 for previous quarter ended Dec 2020 and Rs -26.44 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 128.0 cr for period ended Mar 2021 vis-vis sales of Rs 144.0 cr for the period ended Mar 2020, a fall of 12.5%. The 3 year sales cagr stood at 3.3%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 29.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, rising 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 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 185% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 123% 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 27.47% vis-vis 27.47% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.82 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.42% over past five years.
– has a low return on equity of 1.23% for last 3 years.
-Earnings include an other income of Rs.19.00 Cr.
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 163.42 and is trading at 220.0 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
