Mehabe score: 2 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
Manaksia Aluminium Company is primarily engaged in the manufacture of value-added secondary aluminium products like Aluminium Rolled Sheets / Coils.(Source : 201903 Annual Report Page No:86)Site:MANAKALUCO
Market Cap:
Rs 129 cr
Price:
19.6
Trading pe:
x
Book-value:
15.8/share
Div yield:
0.00 %
Earning yield:
3.82%
Face-value:
1.00/share
52week high:
23.95
52week low:
6.15
Technical Analysis
Stock trades at 19.6, above its 50dma 14.85. It also trades above its 200dma 10.33. The stock remains bullish on techicals
The 52 week high is at 23.95 and the 52week low is at 6.15
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.11% over past five years.
– has a low return on equity of 4.31% for last 3 years.
Competition
– The industry trades at a mean P/E of 19.2x. Arfin India trades at the industry’s max P/E of 30.76x. MANAKALUCO trades at a P/E of x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. MANAKALUCO has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 14.6%. The max 1- month return was given by Manaksia Alumi.: a return of 52.92 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 88.3 cr compared to Rs 63.53 cr for period ended Mar 2020, a rise of 39.0%
Operating Profits reported at Rs 4.98 cr for period ended Mar 2021 vis-vis 5.41 for period ended Mar 2020 .
Operating Margins contracted -287.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.4 compared to Rs 0.34 for previous quarter ended Dec 2020 and Rs 0.4 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 272.0 cr for period ended Mar 2021 vis-vis sales of Rs 281.0 cr for the period ended Mar 2020, a fall of 3.3%. The 3 year sales cagr stood at 6.1%.
Operating margins shrank to 4.0% for period ended Mar 2021 vis-vis 7.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs -3.0 cr for period ended Mar 2021 vis-vis sales of Rs 6.0 cr for the period ended Mar 2020, falling 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 220% on a 1 Year basis vis-vis a return of 43% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -162% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.01% vis-vis 28.01% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.11% over past five years.
– has a low return on equity of 4.31% for last 3 years.
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 14.85 and is trading at 19.6, thus bullish price action wise.
