Mehabe score: 5 G Factor: 4 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 4 and Piotski score of 4.
Description
Geekay Wires is engaged in manufacturing of niche quality Galvanized Steel Wires and Nails which find applications in Power Transmission, Cable & Conductor, General Engineering, Construction etc.Site:GEEKAYWIREMain Symbol:www.nseindia.com
Stock trades at 90.2, above its 50dma 86.9. It also trades above its 200dma 83.31. The stock remains bullish on techicals
The 52 week high is at 112.90 and the 52week low is at 58.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is providing a good dividend yield of 4.54%.
– has delivered good profit growth of 57.60% CAGR over last 5 years
Weakness
– Earnings include an other income of Rs.7.06 Cr.
-Promoter holding has decreased over last 3 years: -6.67%
Competition
– The industry trades at a mean P/E of 32.8x. Ultracab India trades at the industry’s max P/E of 76.49x. GEEKAYWIRE trades at a P/E of 15.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. GEEKAYWIRE has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is -1.1%. The max 1- month return was given by Ultracab India: a return of 9.51 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 64.44 cr compared to Rs 45.0 cr for period ended Sep 2020, a rise of 43.2%
Company reported negative operating profit of Rs -2.1 cr for period ended Sep 2021. For same period last year, operating profit was 5.0
The EPS for Sep 2021 was Rs 1.73 compared to Rs 1.39 for previous quarter ended Jun 2021 and Rs 1.95 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 211.0 cr for period ended TTM vis-vis sales of Rs 170.0 cr for the period ended Mar 2021, a healthy growth of 19.4%. The 3 year sales cagr stood at -1.1%.
Operating margins shrank to 2.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, contraction of 500.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 26.0% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 39% on a 1 Year basis vis-vis a return of 40% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -5% vis-vis a compounded profit growth of 98% over the last 3 Years.
Ratios
Conclusion
– Stock is providing a good dividend yield of 4.54%.
– has delivered good profit growth of 57.60% CAGR over last 5 years – Earnings include an other income of Rs.7.06 Cr.
-Promoter holding has decreased over last 3 years: -6.67%
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 86.9 and is trading at 90.2 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
