Mehabe score: 5 G Factor: 0 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 0 and Piotski score of 7.
Description
Niraj Cement Structurals is engaged in execution of contracts of various infrastructure projects, including road work, bridge work and irrigation projects.Site:NIRAJ
Market Cap:
Rs 178 cr
Price:
44.2
Trading pe:
92.6x
Book-value:
39.4/share
Div yield:
0.00 %
Earning yield:
1.85%
Face-value:
10.0/share
52week high:
54.95
52week low:
30.70
Technical Analysis
Stock trades at 44.2, above its 50dma 42.72. It also trades above its 200dma 41.68. The stock remains bullish on techicals
The 52 week high is at 54.95 and the 52week low is at 30.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.12 times its book value
– is expected to give good quarter
-Debtor days have improved from 203.63 to 133.21 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 24.26%
– has a low return on equity of 1.21% for last 3 years.
-Earnings include an other income of Rs.2.74 Cr.
Competition
– The industry trades at a mean P/E of 33.7x. Macrotech Devel. trades at the industry’s max P/E of 92.55x. NIRAJ trades at a P/E of 92.6x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 6.0. NIRAJ has a G-Factor of 0 and Piotski scoreof 7.
– Average 1 month return for industry is 15.3%. The max 1- month return was given by JP Associates: a return of 45.93 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 45.34 cr compared to Rs 43.82 cr for period ended Mar 2020, a rise of 3.5%
Operating Profits reported at Rs 0.53 cr for period ended Mar 2021 vis-vis 1.95 for period ended Mar 2020 .
Operating Margins contracted -328.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.02 compared to Rs 0.02 for previous quarter ended Dec 2020 and Rs 0.45 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 175.0 cr for period ended Mar 2021 vis-vis sales of Rs 124.0 cr for the period ended Mar 2020, a healthy growth of 29.1%. The 3 year sales cagr stood at 17.5%.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, falling 100.0%.
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 -18.0 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 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of -17% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is 41% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is -31% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 75.74% vis-vis 77.24% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.12 times its book value
– is expected to give good quarter
-Debtor days have improved from 203.63 to 133.21 days. – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 24.26%
– has a low return on equity of 1.21% for last 3 years.
-Earnings include an other income of Rs.2.74 Cr.
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 42.72 and is trading at 44.2 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
