Mehabe score: 4 G Factor: 4 Piotski Score: 4 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 4.
Description
Parvati Sweetners & Power is engaged in the Business of Manufacturing of Sugar and its By-Products.Site:541347
Market Cap:
Rs 34.8 cr
Price:
3.86
Trading pe:
27.8x
Book-value:
6.32/share
Div yield:
0.00 %
Earning yield:
3.48%
Face-value:
5.00/share
52week high:
4.15
52week low:
1.04
Technical Analysis
Stock trades at 3.86, above its 50dma 3.16. It also trades above its 200dma 2.48. The stock remains bullish on techicals
The 52 week high is at 4.15 and the 52week low is at 1.04
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.61 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 0.98% for last 3 years.
Competition
– The industry trades at a mean P/E of 14.5x. Parvati Sweetner trades at the industry’s max P/E of 27.85x. 541347 trades at a P/E of 27.8x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. 541347 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 11.1%. The max 1- month return was given by Sh.Renuka Sugar: a return of 79.87 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 26.45 cr compared to Rs 14.34 cr for period ended Mar 2020, a rise of 84.4%
Operating Profits reported at Rs 4.0 cr for period ended Mar 2021 vis-vis 2.77 for period ended Mar 2020 .
Operating Margins contracted -419.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.39 compared to Rs 0.12 for previous quarter ended Dec 2020 and Rs -0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 58.54 cr for period ended Mar 2021 vis-vis sales of Rs 50.19 cr for the period ended Mar 2020, a healthy growth of 14.3%. The 3 year sales cagr stood at -0.7%.
Operating margins shrank to 14.21% for period ended Mar 2021 vis-vis 15.36% for period ended Mar 2020, contraction of 115.0 bps.
Net Profit reported at Rs 1.24 cr for period ended Mar 2021 vis-vis sales of Rs 0.18 cr for the period ended Mar 2020, rising 85.5%.
Company reported a poor Net Profit CAGR of -5.1% 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 -3.98 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 209% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 238% vis-vis a compounded profit growth of -5% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.33% vis-vis 34.33% for Dec 2020
Conclusion
– Stock is trading at 0.61 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 0.98% for last 3 years.
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 3.16 and is trading at 3.86 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
