Mehabe score: 3 G Factor: 2 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 2 and Piotski score of 4.
Description
Starlit Power Systems was incorporated in the year 2008 with initial focus on manufacturing and distribution of Secondary Power Storage Batteries. The Company is engaged in manufacture of Batteries for E-Mobility.Site:538733
Market Cap:
Rs 15.7 cr
Price:
15.6
Trading pe:
x
Book-value:
-7.80/share
Div yield:
0.00 %
Earning yield:
-8.40%
Face-value:
10.0/share
52week high:
22.00
52week low:
11.50
Technical Analysis
Stock trades at 15.6, below its 50dma 16.05 and below its 200dma 15.91. The stock remains bearish on technicals
The 52 week high is at 22.00 and the 52week low is at 11.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 104.56 to 65.39 days.
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 29.32%
Competition
– The industry trades at a mean P/E of 23.7x. KIOCL trades at the industry’s max P/E of 54.75x. 538733 trades at a P/E of x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 8.0. 538733 has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by Maithan Alloys: a return of 34.55 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.85 cr compared to Rs 4.35 cr for period ended Mar 2020, a rise of 80.5%
Company reported negative operating profit of Rs -0.22 cr for period ended Mar 2021. For same period last year, operating profit was -0.26
The EPS for Mar 2021 was Rs -0.85 compared to Rs -1.67 for previous quarter ended Dec 2020 and Rs 3.54 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.75 cr for period ended Mar 2021 vis-vis sales of Rs 11.5 cr for the period ended Mar 2020, a healthy growth of 35.2%. The 3 year sales cagr stood at 35.7%.
Operating margins shrank to -22.2% for period ended Mar 2021 vis-vis -17.3% for period ended Mar 2020, contraction of 490.0 bps.
Net Profit reported at Rs -4.8 cr for period ended Mar 2021 vis-vis sales of Rs -1.7 cr for the period ended Mar 2020, falling 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 -0.85 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 6% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 54% vis-vis a compounded sales growth of 36% over the last 3 Years. – The compounded profit growth on a TTM basis is -182% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 70.68% vis-vis 70.68% for Dec 2020
Conclusion
– is expected to give good quarter
-Debtor days have improved from 104.56 to 65.39 days. – has low interest coverage ratio.
-Promoter holding is low: 29.32%
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 16.05 and is trading at 15.6. 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
