Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 6.
Description
Pilani Investment & Industries Corp. is engaged in the business of Activities of Holding Companies and Interest Income.Site:PILANIINVSMain Symbol:PILANIINVS
Stock trades at 1916.0, above its 50dma 1880.5. It also trades above its 200dma 1770.1. The stock remains bullish on techicals
The 52 week high is at 2330.00 and the 52week low is at 1110.71
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.22 times its book value
– is expected to give good quarter
Weakness
– has a low return on equity of 12.66% for last 3 years.
-Dividend payout has been low at 9.82% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 22.0x. SBI Cards trades at the industry’s max P/E of 102.1x. PILANIINVS trades at a P/E of 17.2x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 6.0. PILANIINVS has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -0.9%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 5.34 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 98.0 cr compared to Rs 62.0 cr for period ended Sep 2020, a rise of 58.1%
Operating Profits reported at Rs 97.0 cr for period ended Sep 2021 vis-vis 59.0 for period ended Sep 2020 .
Operating Margins expanded 381.8 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 71.46 compared to Rs 31.62 for previous quarter ended Jun 2021 and Rs 27.75 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 252.0 cr for period ended TTM vis-vis sales of Rs 199.0 cr for the period ended Mar 2021, a healthy growth of 21.0%. The 3 year sales cagr stood at 116.0%.
Operating margins expanded to 98.0% for period ended TTM vis-vis 96.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 172.0 cr for period ended TTM vis-vis sales of Rs 97.0 cr for the period ended Mar 2021, rising 43.6%.
Company reported a poor Net Profit CAGR of -56.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -442.0 cr for period ended Mar 2021 vis-vis Rs -1388.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 36% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of 87% over the last 3 Years. – The compounded profit growth on a TTM basis is -4% vis-vis a compounded profit growth of -10% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.36% vis-vis 0.36% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 41.84% vis-vis 41.84% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.22 times its book value
– is expected to give good quarter – has a low return on equity of 12.66% for last 3 years.
-Dividend payout has been low at 9.82% of profits over 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 above its 50 DMA 1880.5 and is trading at 1916.0, thus bullish price action wise.
