Mehabe score: 3 G Factor: 3 Piotski Score: 5 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 5.
Description
Gita Renewable Energy is engaged in power generation.(Source : 201903 Annual Report Page No: 67)Site:539013Main Symbol:GITARENEW
Stock trades at 246.0, above its 50dma 148.43. It also trades above its 200dma 65.65. The stock remains bullish on techicals
The 52 week high is at 300.00 and the 52week low is at 5.49
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 28.80 times its book value
– has low interest coverage ratio.
– has a low return on equity of -35.51% for last 3 years.
– has high debtors of 28758.96 days.
Competition
– The industry trades at a mean P/E of 29.3x. Adani Green trades at the industry’s max P/E of 450.02x. 539013 trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 539013 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 13.5%. The max 1- month return was given by Gita Renewable: a return of 96.21 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.46 cr compared to Rs 0.06 cr for period ended Jun 2020, a rise of 666.7%
Operating Profits reported at Rs 0.37 cr for period ended Jun 2021 vis-vis 0.01 for period ended Jun 2020 .
Operating Margins expanded 6376.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.88 compared to Rs 0.36 for previous quarter ended Mar 2021 and Rs -1.14 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, a growth of 0%.
Operating margins expanded to -1618.0% for period ended TTM vis-vis -3367.0% for period ended Mar 2021, expansion of 174900.0 bps.
Net Profit reported at Rs -14.0 cr for period ended TTM vis-vis sales of Rs -14.0 cr for the period ended Mar 2021,
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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -134.0% compared to -36.0% over the last 3 Years. – The stock has given a return of 4370% on a 1 Year basis vis-vis a return of 255% over the last 3 Years. – The compounded sales growth on a TTM bassis is -33% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -708% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.95% vis-vis 26.95% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 28.80 times its book value
– has low interest coverage ratio.
– has a low return on equity of -35.51% for last 3 years.
– has high debtors of 28758.96 days.
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 148.43 and is trading at 246.0 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
