Mehabe score: 4 G Factor: 6 Piotski Score: 6 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 6.
Description
Gallantt Ispat is engaged in the business of Iron & Steel, Agro, Power and Real Estate. is engaged in manufacturing of Steel and Steel products.Site:GALLISPATMain Symbol:GALLISPAT
Stock trades at 63.0, above its 50dma 54.91. It also trades above its 200dma 43.96. The stock remains bullish on techicals
The 52 week high is at 70.00 and the 52week low is at 26.15
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.60% for last 3 years.
Competition
– The industry trades at a mean P/E of 9.8x. Lloyds Metals trades at the industry’s max P/E of 19553.46x. GALLISPAT trades at a P/E of 14.4x
– Industry’s mean G-Factor is 5.6 while the mean Piotski score is 8.0. GALLISPAT has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 15.3%. The max 1- month return was given by Lloyds Metals: a return of 38.83 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 328.0 cr compared to Rs 182.0 cr for period ended Jun 2020, a rise of 80.2%
Operating Profits reported at Rs 46.0 cr for period ended Jun 2021 vis-vis 31.0 for period ended Jun 2020 .
Operating Margins contracted -300.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.27 compared to Rs 1.72 for previous quarter ended Mar 2021 and Rs 0.59 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1243.0 cr for period ended TTM vis-vis sales of Rs 1097.0 cr for the period ended Mar 2021, a healthy growth of 11.7%. The 3 year sales cagr stood at 0.4%.
Net Profit reported at Rs 143.0 cr for period ended TTM vis-vis sales of Rs 123.0 cr for the period ended Mar 2021, rising 14.0%.
Company reported a poor Net Profit CAGR of -4.5% over the last 3 years
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 130% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 24% over the last 3 Years. – The compounded profit growth on a TTM basis is 103% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 36.9% vis-vis 36.91% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.60% 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 54.91 and is trading at 63.0, thus bullish price action wise.
