Mehabe score: 7 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Lagnam Spintex is engaged in the business of production of cotton yarns.Site:LAGNAMMain Symbol:www.nseindia.com
Stock trades at 53.9, above its 50dma 38.66. It also trades above its 200dma 27.04. The stock remains bullish on techicals
The 52 week high is at 49.25 and the 52week low is at 6.60
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 6.95% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 41.87% of their holding.
Competition
– The industry trades at a mean P/E of 27.6x. Garware Tech. trades at the industry’s max P/E of 45.89x. LAGNAM trades at a P/E of 20.9x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. LAGNAM has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 15.8%. The max 1- month return was given by Trident: a return of 56.3 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 81.34 cr compared to Rs 19.64 cr for period ended Jun 2020, a rise of 314.2%
Company reported operating profit of Rs 12.81 cr for period ended Sep 2021, operating profit margin at 15.7 %.
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 3.49 compared to Rs 3.47 for previous quarter ended Jun 2021 and Rs -4.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 205.0 cr for period ended Mar 2021 vis-vis sales of Rs 176.0 cr for the period ended Mar 2020, a healthy growth of 14.1%. The 3 year sales cagr stood at 34.6%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 80.0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 6.0 cr for period ended Mar 2021 vis-vis Rs -7.0 cr for period ended Mar 2020
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 8.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 574% on a 1 Year basis vis-vis a return of 45% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of 35% over the last 3 Years. – The compounded profit growth on a TTM basis is 310% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of 6.95% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 41.87% of their holding.
