Mehabe score: 3 G Factor: 3 Piotski Score: 3 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 3.
Description
Shashijit Infraprojects is engaged in the business of Works Contract Services.(Source : 201903 Annual Report Page No:39)Site:540147
Market Cap:
Rs 33.5 cr
Price:
32.4
Trading pe:
x
Book-value:
10.9/share
Div yield:
0.00 %
Earning yield:
0.55%
Face-value:
10.0/share
52week high:
36.20
52week low:
17.00
Technical Analysis
Stock trades at 32.4, above its 50dma 31.41. It also trades above its 200dma 28.68. The stock remains bullish on techicals
The 52 week high is at 36.20 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 2.97 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.98% over past five years.
– has a low return on equity of -1.67% for last 3 years.
– has high debtors of 163.84 days.
Competition
– The industry trades at a mean P/E of 36.7x. Macrotech Devel. trades at the industry’s max P/E of 19.14x. 540147 trades at a P/E of x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 6.0. 540147 has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 13.7%. The max 1- month return was given by JP Associates: a return of 44.83 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.54 cr compared to Rs 5.29 cr for period ended Mar 2020, a rise of 42.5%
Operating Profits reported at Rs 0.51 cr for period ended Mar 2021 vis-vis 0.64 for period ended Mar 2020 .
Operating Margins contracted -533.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.01 compared to Rs 0.13 for previous quarter ended Dec 2020 and Rs 0.42 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.82 cr for period ended Mar 2021 vis-vis sales of Rs 28.68 cr for the period ended Mar 2020, a fall of 70.5%. The 3 year sales cagr stood at -28.4%.
Operating margins expanded to 6.24% for period ended Mar 2021 vis-vis 1.88% for period ended Mar 2020, expansion of 436.0 bps.
Net Profit reported at Rs -0.15 cr for period ended Mar 2021 vis-vis sales of Rs -0.61 cr for the period ended Mar 2020, rising 0%.
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 stock has given a return of 55% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -41% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is 75% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.75% vis-vis 27.75% for Dec 2020
Conclusion
– – Stock is trading at 2.97 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.98% over past five years.
– has a low return on equity of -1.67% for last 3 years.
– has high debtors of 163.84 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 31.41 and is trading at 32.4 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
