Mehabe score: 4 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
Mishka Exim is engaged in the business of sale/purchase and trading of jewelley, fabric and shares.Site:539220Main Symbol:MISHKA
Stock trades at 34.1, above its 50dma 31.0. It also trades above its 200dma 29.07. The stock remains bullish on techicals
The 52 week high is at 35.15 and the 52week low is at 24.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 2.51 times its book value
-The company has delivered a poor sales growth of -26.43% over past five years.
– has a low return on equity of -0.54% for last 3 years.
Competition
– The industry trades at a mean P/E of 48.4x. Mishka Exim trades at the industry’s max P/E of 189.5x. 539220 trades at a P/E of 190.0x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 539220 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by Rain Industries: a return of 27.86 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.21 cr compared to Rs 0.09 cr for period ended Jun 2020, a rise of 3466.7%
Company reported negative operating profit of Rs -0.13 cr for period ended Jun 2021. For same period last year, operating profit was 0.01
The EPS for Jun 2021 was Rs -0.1 compared to Rs -0.01 for previous quarter ended Mar 2021 and Rs -0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.29 cr for period ended TTM vis-vis sales of Rs 3.17 cr for the period ended Mar 2021, a healthy growth of 49.6%. The 3 year sales cagr stood at -8.5%.
Operating margins shrank to 3.34% for period ended TTM vis-vis 10.73% for period ended Mar 2021, contraction of 739.0 bps.
Net Profit reported at Rs 0.15 cr for period ended TTM vis-vis sales of Rs 0.26 cr for the period ended Mar 2021, falling 73.3%.
Company recorded a Net Profit CAGR of 2.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.11 cr for period ended Mar 2021 vis-vis Rs -0.78 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 1.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 28% 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 -10% vis-vis a compounded sales growth of -29% over the last 3 Years. – The compounded profit growth on a TTM basis is 136% vis-vis a compounded profit growth of 55% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 47.3% vis-vis 47.3% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 2.51 times its book value
-The company has delivered a poor sales growth of -26.43% over past five years.
– has a low return on equity of -0.54% for last 3 years.
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 31.0 and is trading at 34.1 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
