Mehabe score: 3 G Factor: 1 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 1 and Piotski score of 4.
Description
Akash Infraprojects is engaged in Business of Building of complete constructions or parts thereof; civil engineering.Site:AKASHMain Symbol:www.nseindia.com
Stock trades at 236.0, above its 50dma 187.65. It also trades above its 200dma 198.51. The stock remains bullish on techicals
The 52 week high is at 281.00 and the 52week low is at 146.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 4.98 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.19% over past five years.
– has a low return on equity of 1.50% for last 3 years.
-Earnings include an other income of Rs.1.83 Cr.
– has high debtors of 356.62 days.
Competition
– The industry trades at a mean P/E of 36.5x. Macrotech Devel. trades at the industry’s max P/E of 644.56x. AKASH trades at a P/E of 262.0x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. AKASH has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 15.8%. The max 1- month return was given by National Standar: a return of 77.79 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 13.54 cr compared to Rs 15.98 cr for period ended Sep 2020, a fall of 15.3%
Operating Profits reported at Rs 1.55 cr for period ended Sep 2021 vis-vis 1.12 for period ended Sep 2020 .
Operating Margins expanded 443.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.25 compared to Rs 0.3 for previous quarter ended Jun 2021 and Rs 0.14 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 65.68 cr for period ended TTM vis-vis sales of Rs 67.06 cr for the period ended Mar 2021, a fall of 2.1%. The 3 year sales cagr stood at -10.7%.
Operating margins expanded to 8.19% for period ended TTM vis-vis 6.59% for period ended Mar 2021, expansion of 160.0 bps.
Net Profit reported at Rs 1.7 cr for period ended TTM vis-vis sales of Rs 1.15 cr for the period ended Mar 2021, rising 32.4%.
Company reported a poor Net Profit CAGR of -0.4% over the last 3 years
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 1.0% compared to 2.0% over the last 3 Years. – The stock has given a return of -5% on a 1 Year basis vis-vis a return of 64% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of -25% over the last 3 Years. – The compounded profit growth on a TTM basis is 1800% vis-vis a compounded profit growth of -17% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 4.98 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.19% over past five years.
– has a low return on equity of 1.50% for last 3 years.
-Earnings include an other income of Rs.1.83 Cr.
– has high debtors of 356.62 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 187.65 and is trading at 236.0 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
