Mehabe score: 4 G Factor: 6 Piotski Score: 4 The stock has a rating SELL. 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 6 and Piotski score of 4.
Description
Madhav Copper Limited is an India-based company, which is engaged in the manufacture and supply of enameled copper wire and poly wrap submersible winding wire.Site:MCL
Market Cap:
Rs 227 cr
Price:
83.6
Trading pe:
51.7x
Book-value:
15.5/share
Div yield:
0.00 %
Earning yield:
3.14%
Face-value:
5.00/share
52week high:
116.00
52week low:
54.30
Technical Analysis
Stock trades at 83.6, below its 50dma 86.87 and below its 200dma 86.08. The stock remains bearish on technicals
The 52 week high is at 116.00 and the 52week low is at 54.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last 3 years: -6.72%
Competition
– The industry trades at a mean P/E of 23.7x. KIOCL trades at the industry’s max P/E of 54.75x. MCL trades at a P/E of 51.7x
– Industry’s mean G-Factor is 5.9 while the mean Piotski score is 8.0. MCL has a G-Factor of 6 and Piotski scoreof 4.
– Average 1 month return for industry is 4.9%. The max 1- month return was given by Maithan Alloys: a return of 34.55 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 145.75 cr compared to Rs 64.14 cr for period ended Mar 2020, a rise of 127.2%
Operating Profits reported at Rs 1.16 cr for period ended Mar 2021 vis-vis 3.42 for period ended Mar 2020 .
Operating Margins contracted -453.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.18 compared to Rs 0.83 for previous quarter ended Dec 2020 and Rs 0.71 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 383.0 cr for period ended Mar 2021 vis-vis sales of Rs 202.0 cr for the period ended Mar 2020, a healthy growth of 47.3%. The 3 year sales cagr stood at 31.4%.
Operating margins shrank to 2.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020,
Company recorded a healthy Net Profit CAGR of 26.0% 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 -19.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 23% on a 1 Year basis vis-vis a return of 37% over the last 3 Years. – The compounded sales growth on a TTM bassis is 90% vis-vis a compounded sales growth of 31% over the last 3 Years. – The compounded profit growth on a TTM basis is 0% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last 3 years: -6.72%
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 86.87 and is trading at 83.6. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
