Mehabe score: 5 G Factor: 3 Piotski Score: 1 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 1. Site:GODHAMain Symbol:www.nseindia.com
Stock trades at 53.7, above its 50dma 39.4. It also trades above its 200dma 38.09. The stock remains bullish on techicals
The 52 week high is at 54.65 and the 52week low is at 27.40
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
– has a low return on equity of 0.62% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 233.76 days.
Competition
– The industry trades at a mean P/E of 31.0x. Ultracab India trades at the industry’s max P/E of 76.47x. GODHA trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. GODHA has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Godha Cabcon: a return of 19.33 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 13.53 cr compared to Rs 0.42 cr for period ended Sep 2020, a rise of 3121.4%
Company reported operating profit of Rs 0.49 cr for period ended Sep 2021, operating profit margin at 3.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.32 compared to Rs 0.09 for previous quarter ended Jun 2021 and Rs -0.52 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 57.93 cr for period ended TTM vis-vis sales of Rs 32.4 cr for the period ended Mar 2021, a healthy growth of 44.1%. The 3 year sales cagr stood at -7.3%.
Operating margins expanded to 2.62% for period ended TTM vis-vis -1.11% for period ended Mar 2021, expansion of 373.0 bps.
Net Profit reported at Rs 0.94 cr for period ended TTM vis-vis sales of Rs -0.38 cr for the period ended Mar 2021, rising 140.4%.
Company recorded a healthy Net Profit CAGR of 37.7% 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 stock has given a return of 87% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is -38% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is -186% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of 0.62% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 233.76 days.
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 39.4 and is trading at 53.7 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
