Mehabe score: 4 G Factor: 1 Piotski Score: 4 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 1 and Piotski score of 4.
Description
Mercator Limited is engaged in sea and coastal freight water transport; renting and operational leasing of water-transport equipment without operator, and cargo handling Services.Site:MERCATOR
Market Cap:
Rs 57.5 cr
Price:
1.9
Trading pe:
x
Book-value:
-35.0/share
Div yield:
0.00 %
Earning yield:
30.99%
Face-value:
1.00/share
52week high:
2.12
52week low:
0.70
Technical Analysis
Stock trades at 1.9, above its 50dma 1.34. It also trades above its 200dma 1.15. The stock remains bullish on techicals
The 52 week high is at 2.12 and the 52week low is at 0.70
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -32.70% over past five years.
-Promoter holding is low: 10.83%
-Contingent liabilities of Rs.276.67 Cr.
-Earnings include an other income of Rs.36.55 Cr.
-Debtor days have increased from 67.36 to 98.19 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -19.90%
Competition
– The industry trades at a mean P/E of 7.9x. SEAMEC Ltd trades at the industry’s max P/E of 29.2x. MERCATOR trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. MERCATOR has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 22.4%. The max 1- month return was given by Shreyas Shipping: a return of 51.39 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 4.0 cr compared to Rs 166.0 cr for period ended Mar 2020, a fall of 97.6%
Company reported negative operating profit of Rs -30.0 cr for period ended Mar 2021. For same period last year, operating profit was 261.0
The EPS for Mar 2021 was Rs -3.82 compared to Rs -2.39 for previous quarter ended Dec 2020 and Rs -8.57 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 374.0 cr for period ended Mar 2021 vis-vis sales of Rs 639.0 cr for the period ended Mar 2020, a fall of 70.9%. The 3 year sales cagr stood at -26.2%.
Operating margins expanded to -3.0% for period ended Mar 2021 vis-vis -20.0% for period ended Mar 2020, expansion of 1700.0 bps.
Net Profit reported at Rs -332.0 cr for period ended Mar 2021 vis-vis sales of Rs -926.0 cr for the period ended Mar 2020, rising 0%.
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 -35.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 46% on a 1 Year basis vis-vis a return of -57% over the last 3 Years. – The compounded sales growth on a TTM bassis is -41% vis-vis a compounded sales growth of -26% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.74% vis-vis 3.84% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 85.4% vis-vis 85.14% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -32.70% over past five years.
-Promoter holding is low: 10.83%
-Contingent liabilities of Rs.276.67 Cr.
-Earnings include an other income of Rs.36.55 Cr.
-Debtor days have increased from 67.36 to 98.19 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -19.90%
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 1.34 and is trading at 1.9 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
