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. Site:NILASPACES
Market Cap:
Rs 94.5 cr
Price:
2.4
Trading pe:
x
Book-value:
3.08/share
Div yield:
0.00 %
Earning yield:
1.63%
Face-value:
1.00/share
52week high:
2.43
52week low:
0.94
Technical Analysis
Stock trades at 2.4, above its 50dma 1.65. It also trades above its 200dma 1.5. The stock remains bullish on techicals
The 52 week high is at 2.43 and the 52week low is at 0.94
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.78 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 low interest coverage ratio.
– has a low return on equity of 1.53% for last 3 years.
-Earnings include an other income of Rs.0.57 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 17.4x. Macrotech Devel. trades at the industry’s max P/E of 18.44x. NILASPACES trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 7.0. NILASPACES has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 21.9%. The max 1- month return was given by JP Associates: a return of 79.62 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 11.74 cr compared to Rs 56.0 cr for period ended Mar 2020, a fall of 79.0%
Company reported negative operating profit of Rs -3.45 cr for period ended Mar 2021. For same period last year, operating profit was -3.89
The EPS for Mar 2021 was Rs -0.08 compared to Rs 0.0 for previous quarter ended Dec 2020 and Rs -0.13 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 45.12 cr for period ended Mar 2021 vis-vis sales of Rs 87.65 cr for the period ended Mar 2020, a fall of 94.3%. The 3 year sales cagr stood at 31.6%.
Operating margins expanded to 4.17% for period ended Mar 2021 vis-vis 2.78% for period ended Mar 2020, expansion of 139.0 bps.
Net Profit reported at Rs -2.38 cr for period ended Mar 2021 vis-vis sales of Rs 2.06 cr for the period ended Mar 2020, falling 0%.
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 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 118% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 119% vis-vis a compounded sales growth of 45% over the last 3 Years. – The compounded profit growth on a TTM basis is -149% vis-vis a compounded profit growth of -44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 5.67% vis-vis 5.69% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 32.43% vis-vis 32.41% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.78 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 1.53% for last 3 years.
-Earnings include an other income of Rs.0.57 Cr.
-‘s cost of borrowing seems high
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 1.65 and is trading at 2.4 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
