Mehabe score: 4 G Factor: 3 Piotski Score: 5 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 3 and Piotski score of 5.
Description
Gayatri Highways Limited is engaged in construction and project activities. It executes civil works, including roads, canals, airport runways, ports and harbors, dams and reservoirs, and railways across India.Site:GAYAHWSMain Symbol:GAYAHWS
Stock trades at 1.05, above its 50dma 0.91. It also trades above its 200dma 0.71. The stock remains bullish on techicals
The 52 week high is at 1.25 and the 52week low is at 0.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-Promoters have pledged 99.93% of their holding.
Competition
– The industry trades at a mean P/E of 35.1x. Macrotech Devel. trades at the industry’s max P/E of 365.15x. GAYAHWS trades at a P/E of x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. GAYAHWS has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 24.4%. The max 1- month return was given by National Standar: a return of 141.53 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 19.0 cr compared to Rs 13.0 cr for period ended Jun 2020, a rise of 46.2%
Company reported negative operating profit of Rs -50.0 cr for period ended Jun 2021. For same period last year, operating profit was -47.0
The EPS for Jun 2021 was Rs -3.67 compared to Rs -3.39 for previous quarter ended Mar 2021 and Rs -3.49 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 87.0 cr for period ended TTM vis-vis sales of Rs 81.0 cr for the period ended Mar 2021, a growth of 6.9%. The 3 year sales cagr stood at 5.1%.
Operating margins expanded to -212.0% for period ended TTM vis-vis -225.0% for period ended Mar 2021, expansion of 1300.0 bps.
Net Profit reported at Rs -333.0 cr for period ended TTM vis-vis sales of Rs -329.0 cr for the period ended Mar 2021, falling 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 163% 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 17% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is -27% vis-vis a compounded profit growth of -40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 6.98% vis-vis 6.98% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 31.86% vis-vis 31.86% for Mar 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-Promoters have pledged 99.93% of their holding.
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 0.91 and is trading at 1.05 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
