Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 7.
Description
ASAL mainly manufactures sheet-metal stampings, welded assemblies, and modules for passenger cars and commercial vehicles (largely for Tata Motors Limited); these products account for more than 95% of the total revenue. It has four manufacturing facilities: two in Pune, one each in Halol (Gujarat) and Pantnagar (Uttarakhand). The Co. is being promoted by TATA Autocomp Systems Ltd (TACO).
Main Points
Product
Co. activities mainly involve Stamping. Stamping is the process of placing flat sheet metal into a press where a tool and die surface forms the metal into a net shapeSite:ASALMain Symbol:ASAL
Stock trades at 68.5, above its 50dma 58.06. It also trades above its 200dma 40.88. The stock remains bullish on techicals
The 52 week high is at 82.30 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.23% over past five years.
Competition
– The industry trades at a mean P/E of 33.1x. WABCO India trades at the industry’s max P/E of 130.4x. ASAL trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. ASAL has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by Minda Industries: a return of 11.6 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 94.13 cr compared to Rs 15.46 cr for period ended Jun 2020, a rise of 508.9%
Company reported operating profit of Rs 1.72 cr for period ended Jun 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 Jun 2021 was Rs -5.55 compared to Rs -0.09 for previous quarter ended Mar 2021 and Rs -10.5 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 418.0 cr for period ended TTM vis-vis sales of Rs 339.0 cr for the period ended Mar 2021, a healthy growth of 18.9%. The 3 year sales cagr stood at -4.6%.
Net Profit reported at Rs -22.0 cr for period ended TTM vis-vis sales of Rs -30.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 250% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 62% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 59% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.0% vis-vis 25.0% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.23% over past five 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 58.06 and is trading at 68.5, thus bullish price action wise.
