Mehabe score: 2 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
GMR Infrastructure is mainly engaged in development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including Engineering, Procurement and Construction (EPC) contracting activities.(Source : 201903 Annual Report Page No: 145)Site:GMRINFRA
Market Cap:
Rs 17,021 cr
Price:
28.2
Trading pe:
x
Book-value:
-0.03/share
Div yield:
0.00 %
Earning yield:
0.52%
Face-value:
1.00/share
52week high:
31.40
52week low:
19.25
Technical Analysis
Stock trades at 28.2, above its 50dma 26.14. It also trades above its 200dma 24.81. The stock remains bullish on techicals
The 52 week high is at 31.40 and the 52week low is at 19.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -1.00%
-The company has delivered a poor sales growth of -5.41% over past five years.
-Promoters have pledged 72.77% of their holding.
Competition
– The industry trades at a mean P/E of 11.9x. Techno Elec.Engg trades at the industry’s max P/E of 18.74x. GMRINFRA trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. GMRINFRA has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 18.9%. The max 1- month return was given by Reliance Infra.: a return of 102.89 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2321.0 cr compared to Rs 2349.0 cr for period ended Mar 2020, a fall of 1.2%
Operating Profits reported at Rs 618.0 cr for period ended Mar 2021 vis-vis 523.0 for period ended Mar 2020 .
Operating Margins expanded 436.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -1.2 compared to Rs -1.86 for previous quarter ended Dec 2020 and Rs -1.87 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6229.0 cr for period ended Mar 2021 vis-vis sales of Rs 8395.0 cr for the period ended Mar 2020, a fall of 34.8%. The 3 year sales cagr stood at -10.0%.
Operating margins shrank to 12.0% for period ended Mar 2021 vis-vis 26.0% for period ended Mar 2020, contraction of 1400.0 bps.
Net Profit reported at Rs -3428.0 cr for period ended Mar 2021 vis-vis sales of Rs -2429.0 cr for the period ended Mar 2020, falling 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 stock has given a return of 39% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -137% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 23.75% vis-vis 21.66% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 10.5% vis-vis 12.84% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -1.00%
-The company has delivered a poor sales growth of -5.41% over past five years.
-Promoters have pledged 72.77% 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 26.14 and is trading at 28.2 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
