Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 3.
Description
7NR Retail Ltd. is engaged in wholeselling and Retailing of the readymade garments. The Company is offering the finest quality product matching with the latest style and fashion.Site:540615Main Symbol:7NR
Stock trades at 12.3, above its 50dma 8.05. It also trades above its 200dma 9.99. The stock remains bullish on techicals
The 52 week high is at 10.45 and the 52week low is at 4.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.36% over past five years.
-Promoter holding is low: 29.86%
– has a low return on equity of -0.63% for last 3 years.
-Promoter holding has decreased over last 3 years: -28.03%
Competition
– The industry trades at a mean P/E of 251.5x. Avenue Super. trades at the industry’s max P/E of 218.47x. 540615 trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 6.0. 540615 has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 9.0%. The max 1- month return was given by 7NR Retail Ltd: a return of 44.52 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 1.96 cr compared to Rs 1.19 cr for period ended Sep 2020, a rise of 64.7%
Company reported operating profit of Rs 0.29 cr for period ended Sep 2021, operating profit margin at 14.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.29 compared to Rs -0.08 for previous quarter ended Jun 2021 and Rs -0.11 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.42 cr for period ended TTM vis-vis sales of Rs 2.76 cr for the period ended Mar 2021, a healthy growth of 19.3%. The 3 year sales cagr stood at -36.3%.
Operating margins expanded to -5.85% for period ended TTM vis-vis -21.74% for period ended Mar 2021, expansion of 1589.0 bps.
Net Profit reported at Rs -0.04 cr for period ended TTM vis-vis sales of Rs -0.53 cr for the period ended Mar 2021, 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -5.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 119% 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 -61% vis-vis a compounded sales growth of -35% over the last 3 Years. – The compounded profit growth on a TTM basis is 91% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 70.14% vis-vis 70.14% for Jun 2021
Conclusion
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.36% over past five years.
-Promoter holding is low: 29.86%
– has a low return on equity of -0.63% for last 3 years.
-Promoter holding has decreased over last 3 years: -28.03%
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 8.05 and is trading at 12.3 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
