Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 4.
Description
Gayatri Projects Ltd. is the flagship company of the esteemed and well diversified Gayatri Group that has interests in infrastructure, power, hospitality, real estate and industry.Site:GAYAPROJ
Market Cap:
Rs 624 cr
Price:
33.4
Trading pe:
x
Book-value:
47.9/share
Div yield:
0.00 %
Earning yield:
11.90%
Face-value:
2.00/share
52week high:
48.65
52week low:
14.00
Technical Analysis
Stock trades at 33.4, above its 50dma 33.35. However it is trading below its 200dma 34.07. The stock remains weak though short term bullish momentum supports price action. It needs to close above 34.07 for bullish price action to continue
The 52 week high is at 48.65 and the 52week low is at 14.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.70 times its book value
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.37%
– has a low return on equity of 0.43% for last 3 years.
-Contingent liabilities of Rs.4379.39 Cr.
-Promoters have pledged 97.26% of their holding.
Competition
– The industry trades at a mean P/E of 14.4x. Macrotech Devel. trades at the industry’s max P/E of 19.87x. GAYAPROJ trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 6.0. GAYAPROJ has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 17.0%. The max 1- month return was given by JP Associates: a return of 55.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1360.0 cr compared to Rs 910.0 cr for period ended Mar 2020, a rise of 49.5%
Operating Profits reported at Rs 105.0 cr for period ended Mar 2021 vis-vis 51.0 for period ended Mar 2020 .
Operating Margins expanded 211.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.0 compared to Rs 2.04 for previous quarter ended Dec 2020 and Rs -4.33 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3901.0 cr for period ended Mar 2021 vis-vis sales of Rs 3439.0 cr for the period ended Mar 2020, a healthy growth of 11.8%. The 3 year sales cagr stood at 10.2%.
Net Profit reported at Rs 43.0 cr for period ended Mar 2021 vis-vis sales of Rs -58.0 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 -5.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 77% on a 1 Year basis vis-vis a return of -43% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is -153% 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 24.5% vis-vis 25.62% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.13% vis-vis 28.37% for Dec 2020
Conclusion
– Stock is trading at 0.70 times its book value – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.37%
– has a low return on equity of 0.43% for last 3 years.
-Contingent liabilities of Rs.4379.39 Cr.
-Promoters have pledged 97.26% 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 33.35 and is trading at 33.4 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
