Mehabe score: 3 G Factor: 5 Piotski Score: 7 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 5 and Piotski score of 7.
Description
Creative Castings is engaged in manufacturing and selling of all types of Steel and Alloy Steel Investment Castings . The company is also engaged in generating of power from wind energy.Site:539527Main Symbol:CREATIVE
Stock trades at 367.0, above its 50dma 354.57. It also trades above its 200dma 353.08. The stock remains bullish on techicals
The 52 week high is at 462.00 and the 52week low is at 306.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 3.72% over past five years.
– has a low return on equity of 11.93% for last 3 years.
-Earnings include an other income of Rs.1.30 Cr.
Competition
– The industry trades at a mean P/E of 33.2x. Bharat Forge trades at the industry’s max P/E of 164.65x. 539527 trades at a P/E of 16.8x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. 539527 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 13.0%. The max 1- month return was given by Jayaswal Neco: a return of 35.31 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 9.15 cr compared to Rs 8.08 cr for period ended Jun 2020, a rise of 13.2%
Operating Profits reported at Rs 0.75 cr for period ended Jun 2021 vis-vis 0.9 for period ended Jun 2020 .
Operating Margins contracted -294.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.62 compared to Rs 6.23 for previous quarter ended Mar 2021 and Rs 4.08 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 31.0 cr for period ended TTM vis-vis sales of Rs 29.93 cr for the period ended Mar 2021, a growth of 3.5%. The 3 year sales cagr stood at 0.8%.
Operating margins shrank to 9.97% for period ended TTM vis-vis 10.89% for period ended Mar 2021, contraction of 92.0 bps.
Net Profit reported at Rs 3.03 cr for period ended TTM vis-vis sales of Rs 2.83 cr for the period ended Mar 2021, rising 6.6%.
Company reported a poor Net Profit CAGR of -4.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 10.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 7% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.04% vis-vis 25.04% for Mar 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 3.72% over past five years.
– has a low return on equity of 11.93% for last 3 years.
-Earnings include an other income of Rs.1.30 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 above its 50 DMA 354.57 and is trading at 367.0, thus bullish price action wise.
