Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 5.
Description
SAL Automotives is engaged in the business of manufacturing seats for tractor & LCV, Seats Mechanisms, Seat Frames, Rotavator,Tractor Trolleys etc.Site:539353Main Symbol:SALAUTO
Stock trades at 214.0, below its 50dma 220.74. However it is trading above its 200dma 184.47. 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 220.74.
The 52 week high is at 287.60 and the 52week low is at 125.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 66.11%
Weakness
– The company has delivered a poor sales growth of -0.23% over past five years.
– has a low return on equity of 3.06% for last 3 years.
-Earnings include an other income of Rs.1.35 Cr.
Competition
– The industry trades at a mean P/E of 20.6x. WABCO India trades at the industry’s max P/E of 86.91x. 539353 trades at a P/E of 22.2x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. 539353 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is -5.9%. The max 1- month return was given by WABCO India: a return of 0.52 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 31.43 cr compared to Rs 8.82 cr for period ended Jun 2020, a rise of 256.3%
Company reported operating profit of Rs 0.63 cr for period ended Jun 2021, operating profit margin at 2.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.92 compared to Rs 2.46 for previous quarter ended Mar 2021 and Rs -5.21 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 117.0 cr for period ended TTM vis-vis sales of Rs 95.0 cr for the period ended Mar 2021, a healthy growth of 18.8%. The 3 year sales cagr stood at -3.7%.
Operating margins expanded to 3.0% for period ended TTM vis-vis 2.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 50.0%.
Company reported a poor Net Profit CAGR of -12.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -1.0 cr for period ended Mar 2021 vis-vis Rs -7.0 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 3.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of -26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 66% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 197% vis-vis a compounded profit growth of -37% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 20.04% vis-vis 20.04% for Mar 2021
Conclusion
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 66.11% – The company has delivered a poor sales growth of -0.23% over past five years.
– has a low return on equity of 3.06% for last 3 years.
-Earnings include an other income of Rs.1.35 Cr.
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 below its 50 DMA 220.74 and is trading at 214.0. Shows a near term lack of buying interest.
