Mehabe score: 4 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
Pritika Auto Industries is engaged in the manufacturing of tractor and automobile components.# It is among leading manufacturers of machined castings in India.#
Main Points
Product Portfolio
The company produces axle housings, wheel housings, hydraulic life housings, end cover, plat differential carriers, cylinder blocks and crank cases for various OEMs in India and abroad.#Site:539359Main Symbol:PRITIKAUTO
Stock trades at 18.8, below its 50dma 18.84. However it is trading above its 200dma 18.23. 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 18.84.
The 52 week high is at 23.80 and the 52week low is at 12.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.47% for last 3 years.
Competition
– The industry trades at a mean P/E of 21.5x. WABCO India trades at the industry’s max P/E of 84.82x. 539359 trades at a P/E of 12.2x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. 539359 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -4.0%. The max 1- month return was given by Exide Inds.: a return of 9.72 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 72.72 cr compared to Rs 22.81 cr for period ended Jun 2020, a rise of 218.8%
Operating Profits reported at Rs 8.55 cr for period ended Jun 2021 vis-vis 0.21 for period ended Jun 2020 .
Operating Margins expanded 1083.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.61 compared to Rs 0.38 for previous quarter ended Mar 2021 and Rs -0.27 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 277.0 cr for period ended TTM vis-vis sales of Rs 226.0 cr for the period ended Mar 2021, a healthy growth of 18.4%.
Operating margins expanded to 12.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 14.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 57.1%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 21.0 cr for period ended Mar 2021 vis-vis Rs 19.0 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 5.0% compared to 7.0% over the last 3 Years. – The stock has given a return of -4% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 89% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 1324% vis-vis a compounded profit growth of -19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 11.17% vis-vis 11.23% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 40.96% vis-vis 40.91% for Mar 2021
Conclusion
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.47% for last 3 years.
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 18.84 and is trading at 18.8. Shows a near term lack of buying interest.
