Mehabe score: 1 G Factor: 3 Piotski Score: 2 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 2.
Description
Vidli Restaurants is engaged in the business of Restaurants and Mobile Foods Service activities.Site:539659Main Symbol:VIDLI
Stock trades at 19.2, above its 50dma 18.41. However it is trading below its 200dma 25.49. The stock remains weak though short term bullish momentum supports price action. It needs to close above 25.49 for bullish price action to continue
The 52 week high is at 24.00 and the 52week low is at 9.63
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Promoter holding has increased by 2.19% over last quarter.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.39% over past five years.
– has a low return on equity of 2.61% for last 3 years.
-Debtor days have increased from 68.82 to 97.15 days.
Competition
– The industry trades at a mean P/E of 115.1x. Indian Hotels Co trades at the industry’s max P/E of 166.8x. 539659 trades at a P/E of 167.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 5.0. 539659 has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is -3.0%. The max 1- month return was given by Barbeque-Nation: a return of 22.88 %
Quarterly Results
Sales for period ended Mar 2019 is Rs 2.18 cr compared to Rs 1.63 cr for period ended Sep 2015, a rise of 33.7%
Operating Profits reported at Rs 0.08 cr for period ended Mar 2019 vis-vis 0.1 for period ended Sep 2015 .
Operating Margins contracted -246.5 bps for period ended Mar 2019 vis-vis Sep 2015 .
The EPS for Mar 2019 was Rs 0.28 compared to Rs 0.16 for previous quarter ended Dec 2018 and Rs 0.83 for Sep 2015
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.63 cr for period ended Mar 2021 vis-vis sales of Rs 4.45 cr for the period ended Mar 2020, a fall of 69.2%. The 3 year sales cagr stood at -18.8%.
Operating margins shrank to -3.04% for period ended Mar 2021 vis-vis 0.45% for period ended Mar 2020, contraction of 349.0 bps.
Net Profit reported at Rs 0.05 cr for period ended Mar 2021 vis-vis sales of Rs 0.16 cr for the period ended Mar 2020, falling 220.0%.
Company reported a poor Net Profit CAGR of -30.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 3.0% over the last 3 Years. – The stock has given a return of 28% 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 -41% vis-vis a compounded sales growth of -19% over the last 3 Years. – The compounded profit growth on a TTM basis is -69% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 36.77% vis-vis 38.96% for Sep 2020
Conclusion
– is almost debt free.
-Promoter holding has increased by 2.19% over last quarter. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.39% over past five years.
– has a low return on equity of 2.61% for last 3 years.
-Debtor days have increased from 68.82 to 97.15 days.
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 18.41 and is trading at 19.2 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
