Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 3.
Description
Seacoast Shipping Services Limited is providing single window logistics services to exporters and importers. Seacoast started as a freight forwarders and shipping agents in the year 2005. Today we have grown into a one of the largest freight forwarders in Gujarat. We are among the top 3 freight forwarders handling Agri export commodities exports in containers from Mundra port.Site:542753Main Symbol:SEACOAST
Stock trades at 223.0, above its 50dma 183.25. It also trades above its 200dma 125.51. The stock remains bullish on techicals
The 52 week high is at 235.00 and the 52week low is at 18.27
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 306.50% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 35.92%
-Debtor days have improved from 336.12 to 140.06 days.
Weakness
– Stock is trading at 16.63 times its book value
-Promoter holding has decreased over last quarter: -16.70%
Competition
– The industry trades at a mean P/E of 49.6x. 3M India trades at the industry’s max P/E of 184.74x. 542753 trades at a P/E of 67.6x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. 542753 has a G-Factor of 5 and Piotski scoreof 3.
– Average 1 month return for industry is 3.7%. The max 1- month return was given by Rain Industries: a return of 29.05 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 85.57 cr compared to Rs 0.52 cr for period ended Mar 2020, a rise of 16355.8%
Company reported operating profit of Rs 1.54 cr for period ended Mar 2021, operating profit margin at 1.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.22 compared to Rs 1.25 for previous quarter ended Dec 2020 and Rs 0.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 243.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, a healthy growth of 99.6%. The 3 year sales cagr stood at 524.0%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis -10.0% for period ended Mar 2020, expansion of 1600.0 bps.
Net Profit reported at Rs 11.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 46.0% compared to 36.0% over the last 3 Years. – The stock has given a return of 1062% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 46662% vis-vis a compounded sales growth of 458% over the last 3 Years. – The compounded profit growth on a TTM basis is 36900% vis-vis a compounded profit growth of 618% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.22% vis-vis 0.0% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 42.5% vis-vis 26.03% for Dec 2020
Conclusion
– has delivered good profit growth of 306.50% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 35.92%
-Debtor days have improved from 336.12 to 140.06 days. – Stock is trading at 16.63 times its book value
-Promoter holding has decreased over last quarter: -16.70%
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 183.25 and is trading at 223.0 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
