Mehabe score: 2 G Factor: 6 Piotski Score: 6 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 6 and Piotski score of 6.
Description
Ambica Agarbathies Aroma& Industries is engages in wind power generation; and operates hotels.Site:AMBICAAGAR
Market Cap:
Rs 38.5 cr
Price:
22.4
Trading pe:
19.6x
Book-value:
56.6/share
Div yield:
0.00 %
Earning yield:
8.29%
Face-value:
10.0/share
52week high:
39.70
52week low:
11.95
Technical Analysis
Stock trades at 22.4, above its 50dma 20.65. It also trades above its 200dma 12.34. The stock remains bullish on techicals
The 52 week high is at 39.70 and the 52week low is at 11.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.40 times its book value
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 11.41% over past five years.
-Tax rate seems low
– has a low return on equity of -1.09% for last 3 years.
Competition
– The industry trades at a mean P/E of 51.3x. 3M India trades at the industry’s max P/E of 183.67x. AMBICAAGAR trades at a P/E of 19.6x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. AMBICAAGAR has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by PTC India: a return of 18.35 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 36.96 cr compared to Rs 67.97 cr for period ended Mar 2020, a fall of 45.6%
Company reported negative operating profit of Rs -0.82 cr for period ended Mar 2021. For same period last year, operating profit was 5.58
The EPS for Mar 2021 was Rs 2.07 compared to Rs -0.26 for previous quarter ended Dec 2020 and Rs 1.62 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 142.0 cr for period ended Mar 2021 vis-vis sales of Rs 168.0 cr for the period ended Mar 2020, a fall of 18.3%. The 3 year sales cagr stood at 4.3%.
Operating margins shrank to 3.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, contraction of 500.0 bps.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, falling 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 5.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 460% on a 1 Year basis vis-vis a return of 78% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -78% vis-vis a compounded profit growth of 46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.01% vis-vis 0.01% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 51.65% vis-vis 51.65% for Dec 2020
Conclusion
– Stock is trading at 0.40 times its book value – 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 11.41% over past five years.
-Tax rate seems low
– has a low return on equity of -1.09% 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 20.65 and is trading at 22.4, thus bullish price action wise.
