Mehabe score: 4 G Factor: 3 Piotski Score: 3 The stock has a rating OBSERVE & 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 3 and Piotski score of 3.
Description
Mazagon Dock Shipbuilders Ltd is engaged in building and repairing of ships,submarines,various types of vessels and related engineering products.The company is owned by the Government of India.(Source : Website)Site:MAZDOCK
Market Cap:
Rs 5,392 cr
Price:
267.0
Trading pe:
11.7x
Book-value:
156/share
Div yield:
2.02 %
Earning yield:
-29.36%
Face-value:
10.0/share
52week high:
287.75
52week low:
164.00
Technical Analysis
Stock trades at 267.0, above its 50dma 217.67. It also trades above its 200dma 202.72. The stock remains bullish on techicals
The 52 week high is at 287.75 and the 52week low is at 164.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 37.92%
Weakness
– Contingent liabilities of Rs.44948.31 Cr.
-Earnings include an other income of Rs.295.12 Cr.
Competition
– The industry trades at a mean P/E of 11.1x. Accuracy Shippi. trades at the industry’s max P/E of 33.84x. MAZDOCK trades at a P/E of 11.7x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 7.0. MAZDOCK has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 20.1%. The max 1- month return was given by Accuracy Shippi.: a return of 42.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1105.0 cr compared to Rs 1043.0 cr for period ended Mar 2020, a rise of 5.9%
Company reported operating profit of Rs 43.0 cr for period ended Mar 2021, operating profit margin at 3.9 %.
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 12.85 compared to Rs 7.01 for previous quarter ended Dec 2020 and Rs 3.7 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4050.0 cr for period ended Mar 2021 vis-vis sales of Rs 4978.0 cr for the period ended Mar 2020, a fall of 22.9%. The 3 year sales cagr stood at -3.1%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis 5.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 514.0 cr for period ended Mar 2021 vis-vis sales of Rs 477.0 cr for the period ended Mar 2020, rising 7.2%.
Company recorded a Net Profit CAGR of 1.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -96.0 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 15.0% compared to 17.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -9% vis-vis a compounded profit growth of -6% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.7% vis-vis 0.62% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 13.68% vis-vis 13.33% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 37.92% – Contingent liabilities of Rs.44948.31 Cr.
-Earnings include an other income of Rs.295.12 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 217.67 and is trading at 267.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
