Mehabe score: 5 G Factor: 6 Piotski Score: 7 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 6 and Piotski score of 7.
Description
Everest Industries Ltd is one of India’s leading and fastest growing complete building solutions providers. Incorporated in 1934, Everest has a rich history in manufacturing of Building materials and Pre-Engineered Steel Buildings. #
Main Points
Distribution Network
The company has an established distribution network of 7,000+ dealers with presence in more than 1,00,000 villages and 600 cities in India. #Site:EVERESTINDMain Symbol:EVERESTIND
Stock trades at 480.0, above its 50dma 398.93. It also trades above its 200dma 330.22. The stock remains bullish on techicals
The 52 week high is at 500.00 and the 52week low is at 193.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 17.11%
Weakness
– The company has delivered a poor sales growth of -1.50% over past five years.
– has a low return on equity of 9.79% for last 3 years.
Competition
– The industry trades at a mean P/E of 18.1x. BIGBLOC Const. trades at the industry’s max P/E of 24.71x. EVERESTIND trades at a P/E of 13.2x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 8.0. EVERESTIND has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 28.6%. The max 1- month return was given by Sahyadri Industr: a return of 60.38 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 348.0 cr compared to Rs 290.0 cr for period ended Mar 2020, a rise of 20.0%
Operating Profits reported at Rs 28.0 cr for period ended Mar 2021 vis-vis 1.0 for period ended Mar 2020 .
Operating Margins expanded 770.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.82 compared to Rs 3.44 for previous quarter ended Dec 2020 and Rs -2.04 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1218.0 cr for period ended Mar 2021 vis-vis sales of Rs 1285.0 cr for the period ended Mar 2020, a fall of 5.5%. The 3 year sales cagr stood at -1.4%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 600.0 bps.
Net Profit reported at Rs 56.0 cr for period ended Mar 2021 vis-vis sales of Rs 14.0 cr for the period ended Mar 2020, rising 75.0%.
Company recorded a Net Profit CAGR of 1.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 264.0 cr for period ended Mar 2021 vis-vis Rs 56.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 131% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 309% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.17% vis-vis 0.73% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 47.84% vis-vis 48.26% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 17.11% – The company has delivered a poor sales growth of -1.50% over past five years.
– has a low return on equity of 9.79% 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 398.93 and is trading at 480.0, thus bullish price action wise.
