Mehabe score: 2 G Factor: 3 Piotski Score: 4 The stock has a rating SELL. 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 4.
Description
Ultracab (India) is engaged in Business of Manufacturing Wires and Cables.Site:538706Main Symbol:ULTRACAB
Stock trades at 148.0, below its 50dma 152.28. However it is trading above its 200dma 124.23. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 152.28.
The 52 week high is at 166.50 and the 52week low is at 54.50
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 8.18 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 11.37% over past five years.
– has a low return on equity of 7.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 36.1x. Paramount Comm. trades at the industry’s max P/E of 110.56x. 538706 trades at a P/E of 89.7x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 538706 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -3.4%. The max 1- month return was given by Paramount Comm.: a return of 3.22 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 16.9 cr compared to Rs 14.74 cr for period ended Jun 2020, a rise of 14.7%
Operating Profits reported at Rs 1.67 cr for period ended Jun 2021 vis-vis 1.0 for period ended Jun 2020 .
Operating Margins expanded 309.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.43 compared to Rs 0.55 for previous quarter ended Mar 2021 and Rs 0.25 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 72.81 cr for period ended TTM vis-vis sales of Rs 70.65 cr for the period ended Mar 2021, a growth of 3.0%. The 3 year sales cagr stood at 0.1%.
Operating margins expanded to 10.64% for period ended TTM vis-vis 10.02% for period ended Mar 2021, expansion of 62.0 bps.
Net Profit reported at Rs 2.27 cr for period ended TTM vis-vis sales of Rs 2.04 cr for the period ended Mar 2021, rising 10.1%.
Company recorded a healthy Net Profit CAGR of 24.7% over the last 3 years
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 stock has given a return of 146% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 96% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.82% vis-vis 36.82% for Mar 2021
Conclusion
– – Stock is trading at 8.18 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 11.37% over past five years.
– has a low return on equity of 7.01% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 152.28 and is trading at 148.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
