Mehabe score: 6 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
Amba Enterprises is engaged in the manufacturing and selling of Coil, Transformer Lamination Sheet and related products.Site:539196
Market Cap:
Rs 19.8 cr
Price:
15.6
Trading pe:
12.3x
Book-value:
13.9/share
Div yield:
0.00 %
Earning yield:
9.81%
Face-value:
5.00/share
52week high:
18.98
52week low:
8.21
Technical Analysis
Stock trades at 15.6, above its 50dma 14.47. It also trades above its 200dma 13.39. The stock remains bullish on techicals
The 52 week high is at 18.98 and the 52week low is at 8.21
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.12 times its book value
-Debtor days have improved from 67.22 to 42.36 days.
Weakness
– Promoter holding is low: 39.31%
– has a low return on equity of 8.22% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.0x. A B B trades at the industry’s max P/E of 161.46x. 539196 trades at a P/E of 12.3x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. 539196 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 2.6%. The max 1- month return was given by A B B: a return of 21.49 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 40.09 cr compared to Rs 11.9 cr for period ended Mar 2020, a rise of 236.9%
Operating Profits reported at Rs 1.32 cr for period ended Mar 2021 vis-vis 0.63 for period ended Mar 2020 .
Operating Margins contracted -200.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.69 compared to Rs 0.62 for previous quarter ended Dec 2020 and Rs 0.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 111.0 cr for period ended Mar 2021 vis-vis sales of Rs 101.0 cr for the period ended Mar 2020, a growth of 9.0%. The 3 year sales cagr stood at 15.0%.
Operating margins expanded to 3.0% for period ended Mar 2021 vis-vis 2.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 2.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 50.0%.
Company recorded a healthy Net Profit CAGR of 26.0% over the last 3 years
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 -3.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 33% on a 1 Year basis vis-vis a return of -31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -26% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 6% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 60.69% vis-vis 60.69% for Dec 2020
Conclusion
– Stock is trading at 1.12 times its book value
-Debtor days have improved from 67.22 to 42.36 days. – Promoter holding is low: 39.31%
– has a low return on equity of 8.22% for last 3 years.
– might be capitalizing the interest cost
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 14.47 and is trading at 15.6, thus bullish price action wise.
