Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 6.
Description
Lambodhara Textiles is engaged in the business of Synthetic Yarn.Site:LAMBODHARA
Market Cap:
Rs 86.2 cr
Price:
83.0
Trading pe:
18.4x
Book-value:
59.8/share
Div yield:
0.60 %
Earning yield:
12.66%
Face-value:
5.00/share
52week high:
94.70
52week low:
25.25
Technical Analysis
Stock trades at 83.0, above its 50dma 67.81. It also trades above its 200dma 51.07. The stock remains bullish on techicals
The 52 week high is at 94.70 and the 52week low is at 25.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Debtor days have improved from 30.86 to 24.47 days.
-Promoter holding has increased by 2.29% over last quarter.
Weakness
– The company has delivered a poor sales growth of 5.55% over past five years.
– has a low return on equity of 12.87% for last 3 years.
-Promoters have pledged 39.56% of their holding.
Competition
– The industry trades at a mean P/E of 14.6x. Arvind Ltd trades at the industry’s max P/E of 920.98x. LAMBODHARA trades at a P/E of 18.4x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 8.0. LAMBODHARA has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 9.3%. The max 1- month return was given by Lambodhara Text.: a return of 25.64 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 41.6 cr compared to Rs 41.01 cr for period ended Mar 2020, a rise of 1.4%
Operating Profits reported at Rs 8.99 cr for period ended Mar 2021 vis-vis 5.25 for period ended Mar 2020 .
Operating Margins expanded 880.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.25 compared to Rs 4.04 for previous quarter ended Dec 2020 and Rs 0.6 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 118.0 cr for period ended Mar 2021 vis-vis sales of Rs 175.0 cr for the period ended Mar 2020, a fall of 48.3%. The 3 year sales cagr stood at -10.9%.
Operating margins expanded to 20.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 900.0 bps.
Net Profit reported at Rs 11.0 cr for period ended Mar 2021 vis-vis sales of Rs 7.0 cr for the period ended Mar 2020, rising 36.4%.
Company recorded a healthy Net Profit CAGR of 22.4% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 177% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -34% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -45% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 27.35% vis-vis 29.64% for Dec 2020
Conclusion
– has reduced debt.
-Debtor days have improved from 30.86 to 24.47 days.
-Promoter holding has increased by 2.29% over last quarter. – The company has delivered a poor sales growth of 5.55% over past five years.
– has a low return on equity of 12.87% for last 3 years.
-Promoters have pledged 39.56% 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 above its 50 DMA 67.81 and is trading at 83.0, thus bullish price action wise.
