Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
Navkar Corporation is engaged in providing Container Freight Station (CFS) facilities and Inland Container Depot (ICD) and is focused on capitalizing the available opportunities in the logistics space in western India.Site:NAVKARCORPMain Symbol:NAVKARCORP
Stock trades at 42.6, below its 50dma 45.33. However it is trading above its 200dma 39.38. 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 45.33.
The 52 week high is at 54.75 and the 52week low is at 24.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.35 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.14% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.3x. Jubilant Ingrevia trades at the industry’s max P/E of 180.79x. NAVKARCORP trades at a P/E of 15.4x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. NAVKARCORP has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -4.0%. The max 1- month return was given by Jubilant Ingrevia: a return of 27.18 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 216.0 cr compared to Rs 122.0 cr for period ended Jun 2020, a rise of 77.0%
Operating Profits reported at Rs 46.0 cr for period ended Jun 2021 vis-vis 16.0 for period ended Jun 2020 .
Operating Margins expanded 818.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.87 compared to Rs 0.53 for previous quarter ended Mar 2021 and Rs -0.83 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 767.0 cr for period ended TTM vis-vis sales of Rs 672.0 cr for the period ended Mar 2021, a healthy growth of 12.4%. The 3 year sales cagr stood at 16.7%.
Operating margins expanded to 22.0% for period ended TTM vis-vis 21.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 42.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, rising 61.9%.
Company reported a poor Net Profit CAGR of -7.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 1.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 66% on a 1 Year basis vis-vis a return of -30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 39% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 94% vis-vis a compounded profit growth of -46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.21% vis-vis 0.15% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 24.52% vis-vis 23.51% for Mar 2021
Conclusion
– Stock is trading at 0.35 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.14% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 45.33 and is trading at 42.6. Shows a near term lack of buying interest.
