Mehabe score: 2 G Factor: 2 Piotski Score: 2 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 2 and Piotski score of 2.
Description
Mangalam Global Enterprise is engaged in the Business of Castor Oil, Castor DOC & Castor Seeds .Site:MGELMain Symbol:www.nseindia.com
Stock trades at 49.7, below its 50dma 52.29. However it is trading above its 200dma 47.49. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 52.29.
The 52 week high is at 66.50 and the 52week low is at 35.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 30.76%
Weakness
– has low interest coverage ratio.
-Earnings include an other income of Rs.5.84 Cr.
-Debtor days have increased from 19.19 to 37.39 days.
Competition
– The industry trades at a mean P/E of 21.2x. Manorama Indust. trades at the industry’s max P/E of 108.78x. MGEL trades at a P/E of 40.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. MGEL has a G-Factor of 2 and Piotski scoreof 2.
– Average 1 month return for industry is -9.6%. The max 1- month return was given by Ruchi Soya Inds.: a return of -2.28 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 252.31 cr compared to Rs 206.42 cr for period ended Jun 2020, a rise of 22.2%
Operating Profits reported at Rs 0.6 cr for period ended Jun 2021 vis-vis 2.99 for period ended Jun 2020 .
Operating Margins contracted -121.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -0.23 compared to Rs 0.67 for previous quarter ended Mar 2021 and Rs 0.57 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1006.0 cr for period ended TTM vis-vis sales of Rs 960.0 cr for the period ended Mar 2021, a growth of 4.6%. The 3 year sales cagr stood at 37.1%.
Net Profit reported at Rs 3.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, falling 100.0%.
Company recorded a healthy Net Profit CAGR of 14.5% over the last 3 years
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 0% over the last 3 Years. – The stock has given a return of 20% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 65% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 60% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– has been maintaining a healthy dividend payout of 30.76% – has low interest coverage ratio.
-Earnings include an other income of Rs.5.84 Cr.
-Debtor days have increased from 19.19 to 37.39 days.
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 52.29 and is trading at 49.7. 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
