Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 6.
Description
Bhagyanagar Properties is engaged in the business of real estate. The companys setup IT parks housing projects.Site:BHAGYAPROP
Market Cap:
Rs 94.2 cr
Price:
29.4
Trading pe:
27.9x
Book-value:
36.6/share
Div yield:
0.00 %
Earning yield:
3.97%
Face-value:
2.00/share
52week high:
34.40
52week low:
16.55
Technical Analysis
Stock trades at 29.4, above its 50dma 28.42. It also trades above its 200dma 25.88. The stock remains bullish on techicals
The 52 week high is at 34.40 and the 52week low is at 16.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.80 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 5.05% for last 3 years.
Competition
– The industry trades at a mean P/E of 43.2x. DLF trades at the industry’s max P/E of 277.73x. BHAGYAPROP trades at a P/E of 27.9x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. BHAGYAPROP has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 11.4%. The max 1- month return was given by Oberoi Realty: a return of 18.87 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.51 cr compared to Rs 3.4 cr for period ended Mar 2020, a fall of 55.6%
Operating Profits reported at Rs 0.09 cr for period ended Mar 2021 vis-vis 1.96 for period ended Mar 2020 .
Operating Margins contracted -5168.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.36 compared to Rs -0.02 for previous quarter ended Dec 2020 and Rs 0.81 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.39 cr for period ended Mar 2021 vis-vis sales of Rs 14.31 cr for the period ended Mar 2020, a fall of 123.9%. The 3 year sales cagr stood at 95.1%.
Operating margins shrank to 40.53% for period ended Mar 2021 vis-vis 71.07% for period ended Mar 2020, contraction of 3054.0 bps.
Net Profit reported at Rs 1.94 cr for period ended Mar 2021 vis-vis sales of Rs 9.62 cr for the period ended Mar 2020, falling 395.9%.
Company recorded a healthy Net Profit CAGR of 57.1% 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 stock has given a return of 33% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -44% vis-vis a compounded sales growth of 79% over the last 3 Years. – The compounded profit growth on a TTM basis is -67% vis-vis a compounded profit growth of 96% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.13% vis-vis 24.13% for Dec 2020
Conclusion
– Stock is trading at 0.80 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 5.05% 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 28.42 and is trading at 29.4, thus bullish price action wise.
