Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 7.
Description
Monte Carlo Fashions Limited is engaged in manufacturing and selling of all types of textile garments and clothing accessories under its own brand Monte Carlo and sub-brands namely rock it, luxuria, cloak & decker, tweens and alpha. #
Main Points
Superbrand
Monte Carlo Fashions Limited is one of India’s leading lifestyle fashion retail company and is recognized as Superbrand for woollen knitted apparel in edition(s) of Consumer Superbrands India. #Site:MONTECARLOMain Symbol:MONTECARLO
Stock trades at 349.0, above its 50dma 331.61. It also trades above its 200dma 267.11. The stock remains bullish on techicals
The 52 week high is at 389.70 and the 52week low is at 155.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.20 times its book value
– has been maintaining a healthy dividend payout of 21.14%
Weakness
– The company has delivered a poor sales growth of 0.13% over past five years.
– has a low return on equity of 11.87% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.5x. Garware Tech. trades at the industry’s max P/E of 45.1x. MONTECARLO trades at a P/E of 10.4x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. MONTECARLO has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 10.7%. The max 1- month return was given by PDS Multi.: a return of 39.97 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 42.0 cr compared to Rs 11.0 cr for period ended Jun 2020, a rise of 281.8%
Company reported negative operating profit of Rs -9.0 cr for period ended Jun 2021. For same period last year, operating profit was -14.0
The EPS for Jun 2021 was Rs -4.91 compared to Rs -1.91 for previous quarter ended Mar 2021 and Rs -6.53 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 653.0 cr for period ended TTM vis-vis sales of Rs 622.0 cr for the period ended Mar 2021, a growth of 4.7%. The 3 year sales cagr stood at -0.2%.
Net Profit reported at Rs 70.0 cr for period ended TTM vis-vis sales of Rs 66.0 cr for the period ended Mar 2021, rising 5.7%.
Company recorded a Net Profit CAGR of 5.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 112.0 cr for period ended Mar 2021 vis-vis Rs 37.0 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 12.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 118% on a 1 Year basis vis-vis a return of -6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 26% vis-vis a compounded profit growth of -0% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.19% vis-vis 0.24% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.86% vis-vis 25.66% for Mar 2021
Conclusion
– Stock is trading at 1.20 times its book value
– has been maintaining a healthy dividend payout of 21.14% – The company has delivered a poor sales growth of 0.13% over past five years.
– has a low return on equity of 11.87% for last 3 years.
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 331.61 and is trading at 349.0 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
