Mehabe score: 2 G Factor: 2 Piotski Score: 1 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 2 and Piotski score of 1.
Description
Artemis Electricals is engaged in Manufacture & Trading of LED and allied products.Site:542670Main Symbol:ARTEMISELC
Stock trades at 54.1, above its 50dma 47.53. However it is trading below its 200dma 56.48. The stock remains weak though short term bullish momentum supports price action. It needs to close above 56.48 for bullish price action to continue
The 52 week high is at 107.15 and the 52week low is at 34.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Promoter holding has increased by 2.00% 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 -0.16% over past five years.
-Promoters have pledged 31.48% of their holding.
– has high debtors of 532.76 days.
Competition
– The industry trades at a mean P/E of 28.9x. Artemis Electri. trades at the industry’s max P/E of 848.81x. 542670 trades at a P/E of 849.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. 542670 has a G-Factor of 2 and Piotski scoreof 1.
– Average 1 month return for industry is 0.6%. The max 1- month return was given by Artemis Electri.: a return of 15.85 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 8.02 cr compared to Rs 54.95 cr for period ended Mar 2020, a fall of 85.4%
Operating Profits reported at Rs 2.17 cr for period ended Mar 2021 vis-vis 7.71 for period ended Mar 2020 .
Operating Margins expanded 1302.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.35 compared to Rs -0.56 for previous quarter ended Dec 2020 and Rs 2.26 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.95 cr for period ended Mar 2021 vis-vis sales of Rs 106.92 cr for the period ended Mar 2020, a fall of 137.9%. The 3 year sales cagr stood at -20.5%.
Operating margins shrank to 7.47% for period ended Mar 2021 vis-vis 16.85% for period ended Mar 2020, contraction of 938.0 bps.
Net Profit reported at Rs 0.16 cr for period ended Mar 2021 vis-vis sales of Rs 12.94 cr for the period ended Mar 2020, falling 7987.5%.
Company reported a poor Net Profit CAGR of -74.4% 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 -33.75 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 0.0% compared to 14.0% over the last 3 Years. – The stock has given a return of -43% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -58% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is -99% vis-vis a compounded profit growth of -74% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.96% vis-vis 7.07% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.08% vis-vis 26.97% for Dec 2020
Conclusion
– is almost debt free.
-Promoter holding has increased by 2.00% 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 -0.16% over past five years.
-Promoters have pledged 31.48% of their holding.
– has high debtors of 532.76 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 47.53 and is trading at 54.1 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
