Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 5.
Description
Madhucon Projects is engaged in the business of development and execution of Engineering, Procurement and Construction (EPC) and Turnkey Projects in multiple sectors such as Transportation, Irrigation, Water Resource Infrastructures, Railways, development(Source : 201903 Annual Report Page No:56)Site:MADHUCONMain Symbol:MADHUCON
Stock trades at 6.6, above its 50dma 6.03. It also trades above its 200dma 5.07. The stock remains bullish on techicals
The 52 week high is at 7.82 and the 52week low is at 1.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -18.47% over past five years.
-Contingent liabilities of Rs.542.18 Cr.
-Debtor days have increased from 27.79 to 58.18 days.
Competition
– The industry trades at a mean P/E of 37.9x. Macrotech Devel. trades at the industry’s max P/E of 20.8x. MADHUCON trades at a P/E of 1.13x
– Industry’s mean G-Factor is 5.5 while the mean Piotski score is 7.0. MADHUCON has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 9.3%. The max 1- month return was given by H.G. Infra Engg.: a return of 21.02 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 190.0 cr compared to Rs 192.0 cr for period ended Dec 2019, a fall of 1.0%
Operating Profits reported at Rs 8.0 cr for period ended Dec 2020 vis-vis 15.0 for period ended Dec 2019 .
Operating Margins contracted -360.2 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs -2.15 compared to Rs -2.51 for previous quarter ended Sep 2020 and Rs -16.7 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 761.0 cr for period ended TTM vis-vis sales of Rs 734.0 cr for the period ended Mar 2020, a growth of 3.5%. The 3 year sales cagr stood at -9.7%.
Operating margins shrank to -4.0% for period ended TTM vis-vis 6.0% for period ended Mar 2020, contraction of 1000.0 bps.
Net Profit reported at Rs -886.0 cr for period ended TTM vis-vis sales of Rs -1066.0 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 144% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of -22% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.03% vis-vis 0.03% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.01% vis-vis 41.01% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -18.47% over past five years.
-Contingent liabilities of Rs.542.18 Cr.
-Debtor days have increased from 27.79 to 58.18 days.
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 6.03 and is trading at 6.6, thus bullish price action wise.
