Mehabe score: 4 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
CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems.Site:CGPOWERMain Symbol:CGPOWER
Stock trades at 79.1, above its 50dma 78.14. It also trades above its 200dma 60.72. The stock remains bullish on techicals
The 52 week high is at 92.00 and the 52week low is at 9.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 210.66 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -10.87% over past five years.
-Promoters have pledged 95.80% of their holding.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 28.8x. A B B trades at the industry’s max P/E of 121.03x. CGPOWER trades at a P/E of 13.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. CGPOWER has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 0.6%. The max 1- month return was given by Havells India: a return of 20.25 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1050.0 cr compared to Rs 363.0 cr for period ended Jun 2020, a rise of 189.3%
Company reported operating profit of Rs 107.0 cr for period ended Jun 2021, operating profit margin at 10.2 %.
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 0.36 compared to Rs 2.2 for previous quarter ended Mar 2021 and Rs -3.87 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3651.0 cr for period ended TTM vis-vis sales of Rs 2964.0 cr for the period ended Mar 2021, a healthy growth of 18.8%. The 3 year sales cagr stood at -23.0%.
Operating margins expanded to 9.0% for period ended TTM vis-vis 4.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs -88.0 cr for period ended TTM vis-vis sales of Rs -378.0 cr for the period ended Mar 2021, rising 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 stock has given a return of 751% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -42% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is 309% vis-vis a compounded profit growth of 46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 10.7% vis-vis 8.8% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 29.63% vis-vis 30.65% for Mar 2021
Conclusion
– has reduced debt. – Stock is trading at 210.66 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -10.87% over past five years.
-Promoters have pledged 95.80% of their holding.
-‘s cost of borrowing seems high
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 78.14 and is trading at 79.1, thus bullish price action wise.
