Mehabe score: 4 G Factor: 2 Piotski Score: 5 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 2 and Piotski score of 5.
Description
APPSIL was formed following the Hitachi’s acquisition of 80.1% stake in the global power grids business of ABB Ltd in Dec, 2018 & the subsequent divestment and transfer of global power grids business unit of ABB into a new JV, Hitachi ABB Power Grids Ltd (Hitachi – 80.1% & ABB – 19.99%) which was incorporated in Feb, 2019.Site:POWERINDIAMain Symbol:POWERINDIA
Stock trades at 1871.0, above its 50dma 1829.19. It also trades above its 200dma 1484.72. The stock remains bullish on techicals
The 52 week high is at 2201.60 and the 52week low is at 860.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 8.08 times its book value
– has high debtors of 169.08 days.
Competition
– The industry trades at a mean P/E of 28.7x. ABB Power Produc trades at the industry’s max P/E of 2852.99x. POWERINDIA trades at a P/E of 2853.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. POWERINDIA has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 0.7%. The max 1- month return was given by Havells India: a return of 14.55 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 784.0 cr compared to Rs 633.0 cr for period ended Jun 2020, a rise of 23.9%
Operating Profits reported at Rs 36.0 cr for period ended Jun 2021 vis-vis 30.0 for period ended Jun 2020 .
Operating Margins contracted -14.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.85 compared to Rs 9.31 for previous quarter ended Mar 2021 and Rs 2.57 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3776.0 cr for period ended TTM vis-vis sales of Rs 3420.0 cr for the period ended Dec 2020, a growth of 9.4%.
Operating margins shrank to 7.0% for period ended TTM vis-vis 8.0% for period ended Dec 2020, contraction of 100.0 bps.
Net Profit reported at Rs 115.0 cr for period ended TTM vis-vis sales of Rs 100.0 cr for the period ended Dec 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 610.0 cr for period ended Dec 2020 vis-vis Rs -73.0 cr for period ended Dec 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 0% over the last 3 Years. – The stock has given a return of 112% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -38% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.77% vis-vis 4.93% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 18.39% vis-vis 18.47% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 8.08 times its book value
– has high debtors of 169.08 days.
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 1829.19 and is trading at 1871.0 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
