Mehabe score: 3 G Factor: 5 Piotski Score: 6 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 6.
Description
Indowind Energy is engaged in the business of generation and distribution of power through windmills.(Source : 201903 Annual Report Page No: 85)Site:INDOWINDMain Symbol:INDOWIND
Stock trades at 8.2, above its 50dma 6.08. It also trades above its 200dma 4.5. The stock remains bullish on techicals
The 52 week high is at 9.14 and the 52week low is at 2.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.37 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -2.40%
-The company has delivered a poor sales growth of 0.60% over past five years.
– has a low return on equity of -2.37% for last 3 years.
-Contingent liabilities of Rs.122.38 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.6.29 Cr.
Competition
– The industry trades at a mean P/E of 27.1x. Adani Green trades at the industry’s max P/E of 759.22x. INDOWIND trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 9.0. INDOWIND has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -5.8%. The max 1- month return was given by Indowind Energy: a return of 33.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.74 cr compared to Rs 3.36 cr for period ended Mar 2020, a fall of 78.0%
Company reported operating profit of Rs 0.38 cr for period ended Mar 2021, operating profit margin at 51.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.06 compared to Rs 0.07 for previous quarter ended Dec 2020 and Rs 0.31 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.61 cr for period ended Mar 2021 vis-vis sales of Rs 20.66 cr for the period ended Mar 2020, a fall of 11.0%. The 3 year sales cagr stood at -10.7%.
Operating margins expanded to 51.42% for period ended Mar 2021 vis-vis 40.37% for period ended Mar 2020, expansion of 1105.0 bps.
Net Profit reported at Rs 0.22 cr for period ended Mar 2021 vis-vis sales of Rs 0.06 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 stock has given a return of 128% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 80% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 52.07% vis-vis 49.68% for Dec 2020
Conclusion
– Stock is trading at 0.37 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -2.40%
-The company has delivered a poor sales growth of 0.60% over past five years.
– has a low return on equity of -2.37% for last 3 years.
-Contingent liabilities of Rs.122.38 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.6.29 Cr.
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 above its 50 DMA 6.08 and is trading at 8.2, thus bullish price action wise.
