Mehabe score: 3 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Oriental Trimex (OTL) is a leading importer and processor of natural marbles from all around the globe.Site:ORIENTALTLMain Symbol:ORIENTALTL
Stock trades at 11.7, above its 50dma 9.96. It also trades above its 200dma 9.19. The stock remains bullish on techicals
The 52 week high is at 17.95 and the 52week low is at 5.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.41 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 28.08%
– has a low return on equity of 7.70% for last 3 years.
-Earnings include an other income of Rs.1.90 Cr.
– has high debtors of 197.61 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.29%
Competition
– The industry trades at a mean P/E of 26.0x. Jubilant Ingrevia trades at the industry’s max P/E of 141.55x. ORIENTALTL trades at a P/E of 58.5x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. ORIENTALTL has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 3.8%. The max 1- month return was given by Oriental Trimex: a return of 20.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 6.61 cr compared to Rs 32.5 cr for period ended Mar 2020, a fall of 79.7%
Company reported negative operating profit of Rs -0.27 cr for period ended Mar 2021. For same period last year, operating profit was 3.19
The EPS for Mar 2021 was Rs -0.75 compared to Rs -0.71 for previous quarter ended Dec 2020 and Rs 0.73 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.25 cr for period ended Mar 2021 vis-vis sales of Rs 74.51 cr for the period ended Mar 2020, a fall of 308.3%. The 3 year sales cagr stood at -30.5%.
Operating margins shrank to 7.62% for period ended Mar 2021 vis-vis 11.37% for period ended Mar 2020, contraction of 375.0 bps.
Net Profit reported at Rs -3.92 cr for period ended Mar 2021 vis-vis sales of Rs 2.05 cr for the period ended Mar 2020, falling 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 -6.53 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 8.0% over the last 3 Years. – The stock has given a return of -31% 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 -19% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 108% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 10.54% vis-vis 1.36% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 61.03% vis-vis 70.21% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.41 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 28.08%
– has a low return on equity of 7.70% for last 3 years.
-Earnings include an other income of Rs.1.90 Cr.
– has high debtors of 197.61 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.29%
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 9.96 and is trading at 11.7 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
