Mehabe score: 3 G Factor: 1 Piotski Score: 4 The stock has a rating SELL. 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 1 and Piotski score of 4.
Description
Shree Ganesh Biotech India is a leading Distributor, Supplier, Trading Company of Agro product -potato, paddy seed & medical plantation of stegia & white musli, cashews, canned food.Site:539470
Market Cap:
Rs 230 cr
Price:
116.0
Trading pe:
886.0x
Book-value:
28.8/share
Div yield:
0.00 %
Earning yield:
0.11%
Face-value:
10.0/share
52week high:
148.55
52week low:
91.40
Technical Analysis
Stock trades at 116.0, below its 50dma 118.82 and below its 200dma 126.31. The stock remains bearish on technicals
The 52 week high is at 148.55 and the 52week low is at 91.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 4.01 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 8.01% over past five years.
– has a low return on equity of 5.41% for last 3 years.
– has high debtors of 3072.21 days.
Competition
– The industry trades at a mean P/E of 28.6x. Shree Ganesh Bio trades at the industry’s max P/E of 885.81x. 539470 trades at a P/E of 886.0x
– Industry’s mean G-Factor is 2.0 while the mean Piotski score is 8.0. 539470 has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Piramal Enterp.: a return of 40.98 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.26 cr compared to Rs 0.12 cr for period ended Mar 2020, a rise of 7616.7%
Company reported operating profit of Rs 0.42 cr for period ended Mar 2021, operating profit margin at 4.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.02 compared to Rs 0.19 for previous quarter ended Dec 2020 and Rs -0.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.21 cr for period ended Mar 2021 vis-vis sales of Rs 2.47 cr for the period ended Mar 2020, a healthy growth of 85.6%. The 3 year sales cagr stood at 29.9%.
Operating margins shrank to 4.13% for period ended Mar 2021 vis-vis 9.72% for period ended Mar 2020, contraction of 559.0 bps.
Net Profit reported at Rs 0.32 cr for period ended Mar 2021 vis-vis sales of Rs 0.24 cr for the period ended Mar 2020, rising 25.0%.
Company reported a poor Net Profit CAGR of -55.0% 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 -1.01 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 0.0% compared to 5.0% over the last 3 Years. – The stock has given a return of -10% on a 1 Year basis vis-vis a return of -34% over the last 3 Years. – The compounded sales growth on a TTM bassis is 89% vis-vis a compounded sales growth of -34% over the last 3 Years. – The compounded profit growth on a TTM basis is -73% vis-vis a compounded profit growth of -60% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.92% vis-vis 1.7% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 98.08% vis-vis 98.3% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter – Stock is trading at 4.01 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 8.01% over past five years.
– has a low return on equity of 5.41% for last 3 years.
– has high debtors of 3072.21 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 118.82 and is trading at 116.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
