Mehabe score: 3 G Factor: 3 Piotski Score: 2 The stock has a rating SELL. 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 2. Site:PRAXISMain Symbol:PRAXIS
Stock trades at 44.8, below its 50dma 45.13. However it is trading above its 200dma 44.13. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 45.13.
The 52 week high is at 62.60 and the 52week low is at 28.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Promoter holding has increased by 1.45% over last quarter.
Weakness
– has low interest coverage ratio.
Competition
– The industry trades at a mean P/E of 48.1x. 3M India trades at the industry’s max P/E of 185.92x. PRAXIS trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. PRAXIS has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is -2.8%. The max 1- month return was given by Adani Enterp.: a return of 7.36 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 48.13 cr compared to Rs 23.14 cr for period ended Jun 2020, a rise of 108.0%
Company reported negative operating profit of Rs -11.17 cr for period ended Jun 2021. For same period last year, operating profit was -22.39
The EPS for Jun 2021 was Rs -1.54 compared to Rs -4.68 for previous quarter ended Mar 2021 and Rs -14.06 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 338.0 cr for period ended TTM vis-vis sales of Rs 313.0 cr for the period ended Mar 2021, a growth of 7.4%. The 3 year sales cagr stood at -20.9%.
Operating margins expanded to -18.0% for period ended TTM vis-vis -25.0% for period ended Mar 2021, expansion of 700.0 bps.
Net Profit reported at Rs -69.0 cr for period ended TTM vis-vis sales of Rs -103.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 51.0 cr for period ended Mar 2021 vis-vis Rs -77.0 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 37% on a 1 Year basis vis-vis a return of -37% over the last 3 Years. – The compounded sales growth on a TTM bassis is -55% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -28% 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 4.11% vis-vis 4.29% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 27.02% vis-vis 28.2% for Mar 2021
Conclusion
– has reduced debt.
-Promoter holding has increased by 1.45% over last quarter. – has low interest coverage ratio.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 45.13 and is trading at 44.8. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
