Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
The Company is engaged in the business of wholesale trading of Jewellery. The Jewelleries are manufactured on Job work basis at Ahmedabad and Rajkot. The co had entered into partnership carrying on business of Branded Readymade Garments having exclusive showrooms.Site:542579Main Symbol:AGOL
Stock trades at 62.2, above its 50dma 39.66. It also trades above its 200dma 43.08. The stock remains bullish on techicals
The 52 week high is at 91.35 and the 52week low is at 35.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.55% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.1x. Titan Company trades at the industry’s max P/E of 121.06x. 542579 trades at a P/E of 61.6x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. 542579 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 13.0%. The max 1- month return was given by Ashapuri Gold: a return of 63.55 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 50.34 cr compared to Rs 2.58 cr for period ended Jun 2020, a rise of 1851.2%
Operating Profits reported at Rs 1.41 cr for period ended Sep 2021 vis-vis 2.71 for period ended Jun 2020 .
Operating Margins contracted -10223.8 bps for period ended Sep 2021 vis-vis Jun 2020 .
The EPS for Sep 2021 was Rs 0.37 compared to Rs 0.27 for previous quarter ended Jun 2021 and Rs 1.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 118.0 cr for period ended Mar 2021 vis-vis sales of Rs 121.0 cr for the period ended Mar 2020, a fall of 2.5%. The 3 year sales cagr stood at 35.9%.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 78% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of 36% over the last 3 Years. – The compounded profit growth on a TTM basis is 436% vis-vis a compounded profit growth of 230% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 37.83% vis-vis 37.83% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.55% for last 3 years.
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 39.66 and is trading at 62.2, thus bullish price action wise.
