Mehabe score: 2 G Factor: 1 Piotski Score: 4 The stock has a rating SELL. 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 1 and Piotski score of 4.
Description
E-Land Apparel is primarily engaged in the business of manufacture and sale of garments. The Company caters to both domestic and international markets.Site:ELANDMain Symbol:ELAND
Stock trades at 4.23, below its 50dma 5.29 and below its 200dma 6.35. The stock remains bearish on technicals
The 52 week high is at 7.85 and the 52week low is at 3.24
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.37% over past five years.
-Debtor days have increased from 45.67 to 54.95 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 14.8x. Alok Industries trades at the industry’s max P/E of 21.98x. ELAND trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. ELAND has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 2.9%. The max 1- month return was given by Faze Three: a return of 24.6 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 23.0 cr compared to Rs 18.0 cr for period ended Jun 2020, a rise of 27.8%
The EPS for Jun 2021 was Rs -2.44 compared to Rs -2.42 for previous quarter ended Mar 2021 and Rs -3.05 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 126.0 cr for period ended TTM vis-vis sales of Rs 121.0 cr for the period ended Mar 2021, a growth of 4.0%. The 3 year sales cagr stood at -9.9%.
Operating margins expanded to -2.0% for period ended TTM vis-vis -4.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs -50.0 cr for period ended TTM vis-vis sales of Rs -53.0 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 20% on a 1 Year basis vis-vis a return of -23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.92% vis-vis 32.92% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.37% over past five years.
-Debtor days have increased from 45.67 to 54.95 days.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 5.29 and is trading at 4.23. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
