Mehabe score: 6 G Factor: 3 Piotski Score: 4 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 4.
Description
Olectra Greentech is engaged in the Business of Power Insulators and Electric Bus.Site:OLECTRA
Market Cap:
Rs 1,522 cr
Price:
185.0
Trading pe:
x
Book-value:
88.7/share
Div yield:
0.00 %
Earning yield:
0.28%
Face-value:
4.00/share
52week high:
233.00
52week low:
53.00
Technical Analysis
Stock trades at 185.0, above its 50dma 184.04. It also trades above its 200dma 151.63. The stock remains bullish on techicals
The 52 week high is at 233.00 and the 52week low is at 53.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -3.35%
– has a low return on equity of -0.81% for last 3 years.
-Earnings include an other income of Rs.34.49 Cr.
– has high debtors of 658.46 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 26.3x. ITI trades at the industry’s max P/E of 53.86x. OLECTRA trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. OLECTRA has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 27.9%. The max 1- month return was given by GTL Infra.: a return of 85.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 147.88 cr compared to Rs 70.44 cr for period ended Mar 2020, a rise of 109.9%
Company reported operating profit of Rs 17.5 cr for period ended Mar 2021, operating profit margin at 11.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 1.18 compared to Rs 0.36 for previous quarter ended Dec 2020 and Rs 2.12 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 281.0 cr for period ended Mar 2021 vis-vis sales of Rs 201.0 cr for the period ended Mar 2020, a healthy growth of 28.5%. The 3 year sales cagr stood at 20.4%.
Operating margins expanded to 7.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs 14.0 cr for the period ended Mar 2020, falling 75.0%.
Company reported a poor Net Profit CAGR of -3.9% over the last 3 years
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 -219.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 176% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 24% over the last 3 Years. – The compounded profit growth on a TTM basis is 61% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.01% vis-vis 3.16% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 41.28% vis-vis 37.77% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -3.35%
– has a low return on equity of -0.81% for last 3 years.
-Earnings include an other income of Rs.34.49 Cr.
– has high debtors of 658.46 days.
-‘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 184.04 and is trading at 185.0 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
