Mehabe score: 3 G Factor: 4 Piotski Score: 3 The stock has a rating OBSERVE & 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 3.
Description
Flexituff Ventures International is engaged in the business of technical textile. Manufacturing units of the Company are located at Pithampur in Madhya Pradesh and at Kashipur in Uttarakhand.Site:FLEXITUFF
Market Cap:
Rs 59.6 cr
Price:
24.2
Trading pe:
x
Book-value:
46.5/share
Div yield:
0.00 %
Earning yield:
-7.99%
Face-value:
10.0/share
52week high:
28.90
52week low:
5.75
Technical Analysis
Stock trades at 24.2, above its 50dma 23.82. It also trades above its 200dma 18.56. The stock remains bullish on techicals
The 52 week high is at 28.90 and the 52week low is at 5.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.52 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.54% over past five years.
-Promoter holding is low: 32.88%
– has a low return on equity of -18.61% for last 3 years.
-Contingent liabilities of Rs.119.91 Cr.
-Earnings include an other income of Rs.75.50 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 13.2x. EPL Ltd trades at the industry’s max P/E of 32.02x. FLEXITUFF trades at a P/E of x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 9.0. FLEXITUFF has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 11.3%. The max 1- month return was given by Polyplex Corpn: a return of 22.4 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 265.49 cr compared to Rs 178.35 cr for period ended Mar 2020, a rise of 48.9%
Operating Profits reported at Rs 27.75 cr for period ended Mar 2021 vis-vis 2.11 for period ended Mar 2020 .
Operating Margins expanded 926.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.43 compared to Rs 8.85 for previous quarter ended Dec 2020 and Rs -3.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 847.0 cr for period ended Mar 2021 vis-vis sales of Rs 885.0 cr for the period ended Mar 2020, a fall of 4.5%. The 3 year sales cagr stood at -12.4%.
Operating margins expanded to -1.0% for period ended Mar 2021 vis-vis -8.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs -59.0 cr for period ended Mar 2021 vis-vis sales of Rs -169.0 cr for the period ended Mar 2020, 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -60.0% compared to -19.0% over the last 3 Years. – The stock has given a return of 281% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -30% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is 59% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.93% vis-vis 0.93% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 58.18% vis-vis 58.18% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.52 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.54% over past five years.
-Promoter holding is low: 32.88%
– has a low return on equity of -18.61% for last 3 years.
-Contingent liabilities of Rs.119.91 Cr.
-Earnings include an other income of Rs.75.50 Cr.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 23.82 and is trading at 24.2 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
