Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 5.
Description
Birla Cable is engaged in the Business of Optical Fibre Cable , Copper Cable.Site:BIRLACABLE
Market Cap:
Rs 268 cr
Price:
89.5
Trading pe:
136.0x
Book-value:
53.7/share
Div yield:
0.00 %
Earning yield:
2.47%
Face-value:
10.0/share
52week high:
95.00
52week low:
45.20
Technical Analysis
Stock trades at 89.5, above its 50dma 72.88. It also trades above its 200dma 63.07. The stock remains bullish on techicals
The 52 week high is at 95.00 and the 52week low is at 45.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.31% over past five years.
-Dividend payout has been low at 10.45% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 60.3x. Sterlite Tech. trades at the industry’s max P/E of 38.17x. BIRLACABLE trades at a P/E of 136.0x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 8.0. BIRLACABLE has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 10.5%. The max 1- month return was given by T N Telecom.: a return of 41.35 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 118.96 cr compared to Rs 58.93 cr for period ended Mar 2020, a rise of 101.9%
Operating Profits reported at Rs 11.84 cr for period ended Mar 2021 vis-vis 3.71 for period ended Mar 2020 .
Operating Margins expanded 365.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.11 compared to Rs 0.1 for previous quarter ended Dec 2020 and Rs 0.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 329.0 cr for period ended Mar 2021 vis-vis sales of Rs 223.0 cr for the period ended Mar 2020, a healthy growth of 32.2%. The 3 year sales cagr stood at 0.4%.
Net Profit reported at Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 87.5%.
Company reported a poor Net Profit CAGR of -20.6% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 67% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is -67% vis-vis a compounded profit growth of -33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 33.64% vis-vis 33.64% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.31% over past five years.
-Dividend payout has been low at 10.45% of profits over 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 72.88 and is trading at 89.5, thus bullish price action wise.
