Mehabe score: 4 G Factor: 3 Piotski Score: 8 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 3 and Piotski score of 8.
Description
Banswara Syntex is a vertically integrated textile mill manufacturing man-made synthetic blended Yarn, wool and wool mixed yarn, all type of Fabrics, Jacquard Furnishing Fabrics, besides production of Readymade Garments and Made-ups.(Source : 201903 Annual Report Page No:135)Site:BANSWRAS
Market Cap:
Rs 296 cr
Price:
173.0
Trading pe:
x
Book-value:
191/share
Div yield:
0.87 %
Earning yield:
5.91%
Face-value:
10.0/share
52week high:
192.00
52week low:
60.05
Technical Analysis
Stock trades at 173.0, above its 50dma 139.05. It also trades above its 200dma 111.01. The stock remains bullish on techicals
The 52 week high is at 192.00 and the 52week low is at 60.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.91 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.00% over past five years.
– has a low return on equity of 10.13% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 15.4x. Sangam India trades at the industry’s max P/E of 88.3x. BANSWRAS trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. BANSWRAS has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by Rel. Chemotex: a return of 33.52 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 226.0 cr compared to Rs 336.0 cr for period ended Dec 2019, a fall of 32.7%
Operating Profits reported at Rs 30.0 cr for period ended Dec 2020 vis-vis 44.0 for period ended Dec 2019 .
Operating Margins expanded 17.9 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 6.94 compared to Rs 0.5 for previous quarter ended Sep 2020 and Rs 11.91 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 800.0 cr for period ended TTM vis-vis sales of Rs 1290.0 cr for the period ended Mar 2020, a fall of 61.3%. The 3 year sales cagr stood at -14.8%.
Operating margins shrank to 8.0% for period ended TTM vis-vis 11.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 0.0 cr for period ended TTM vis-vis sales of Rs 53.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 208.0 cr for period ended Mar 2020 vis-vis Rs 137.0 cr for period ended Mar 2019
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 17.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 99% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -41% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -104% vis-vis a compounded profit growth of 39% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.83% vis-vis 36.83% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.91 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.00% over past five years.
– has a low return on equity of 10.13% for last 3 years.
-‘s cost of borrowing seems high
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 139.05 and is trading at 173.0 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
