Mehabe score: 1 G Factor: 5 Piotski Score: 5 The stock has a rating 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 5 and Piotski score of 5.
Description
Adhunik Industries is primarily engaged in the manufacturing and sale of iron and steel related rolled products.(Source : 201903 Annual Report Page No: 90)Site:INCREDIBLEMain Symbol:INCREDIBLE
Stock trades at 32.4, below its 50dma 33.27. However it is trading above its 200dma 28.15. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 33.27.
The 52 week high is at 44.00 and the 52week low is at 15.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.79% over past five years.
– has a low return on equity of 2.47% for last 3 years.
-Promoters have pledged 68.03% of their holding.
Competition
– The industry trades at a mean P/E of 15.7x. Incredible Indus trades at the industry’s max P/E of 41.6x. INCREDIBLE trades at a P/E of 41.6x
– Industry’s mean G-Factor is 5.6 while the mean Piotski score is 8.0. INCREDIBLE has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 0.4%. The max 1- month return was given by Sarda Energy: a return of 17.44 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 137.2 cr compared to Rs 72.56 cr for period ended Jun 2020, a rise of 89.1%
Operating Profits reported at Rs 3.64 cr for period ended Jun 2021 vis-vis 2.49 for period ended Jun 2020 .
Operating Margins contracted -77.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.15 compared to Rs 0.26 for previous quarter ended Mar 2021 and Rs 0.07 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 559.0 cr for period ended TTM vis-vis sales of Rs 494.0 cr for the period ended Mar 2021, a healthy growth of 11.6%. The 3 year sales cagr stood at -5.7%.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021,
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 3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 71% on a 1 Year basis vis-vis a return of -23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -0% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 259% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.04% vis-vis 25.04% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 3.79% over past five years.
– has a low return on equity of 2.47% for last 3 years.
-Promoters have pledged 68.03% of their holding.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 33.27 and is trading at 32.4. Shows a near term lack of buying interest.
