Mehabe score: 4 G Factor: 1 Piotski Score: 6 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 6.
Description
Kavit Industries Ltd. manufactures industrial specialty oil, ink oil, residue oil, jal pentane mixture and lubricants. Site:EVEXIA Main Symbol:EVEXIA
Stock trades at 9.99, below its 50dma 11.34 and below its 200dma 16.95. The stock remains bearish on technicals
The 52 week high is at 34.00 and the 52week low is at 9.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 3.85 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.77% for last 3 years.
-Earnings include an other income of Rs.73.44 Cr.
– has high debtors of 156.37 days.
Competition
– The industry trades at a mean P/E of 28.6x. Evexia Lifecare trades at the industry’s max P/E of 175.77x. EVEXIA trades at a P/E of 176.0x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 8.0. EVEXIA has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 8.1%. The max 1- month return was given by Pidilite Inds.: a return of 19.54 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 26.03 cr compared to Rs 25.94 cr for period ended Sep 2020, a rise of 0.3%
Company reported operating profit of Rs 1.23 cr for period ended Sep 2021, operating profit margin at 4.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.01 compared to Rs 0.01 for previous quarter ended Jun 2021 and Rs 0.0 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 120.0 cr for period ended TTM vis-vis sales of Rs 107.0 cr for the period ended Mar 2021, a healthy growth of 10.8%. The 3 year sales cagr stood at 4.6%.
Operating margins expanded to -58.0% for period ended TTM vis-vis -68.0% for period ended Mar 2021, expansion of 1000.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021, rising 50.0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.0 cr for period ended Mar 2021 vis-vis Rs -3.0 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 2.0% compared to 3.0% over the last 3 Years. – The stock has given a return of -67% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 4.58% vis-vis 4.66% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 52.1% vis-vis 52.01% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter – Stock is trading at 3.85 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.77% for last 3 years.
-Earnings include an other income of Rs.73.44 Cr.
– has high debtors of 156.37 days.
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 11.34 and is trading at 9.99. 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
