Mehabe score: 4 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
Company is in the business of development and sale of real estate. Projects in metro cities like Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune and Goa.Site:PURVAMain Symbol:PURVA
Stock trades at 157.0, above its 50dma 109.93. It also trades above its 200dma 89.27. The stock remains bullish on techicals
The 52 week high is at 142.00 and the 52week low is at 42.10
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.52% over past five years.
– has a low return on equity of 3.34% for last 3 years.
-Earnings include an other income of Rs.445.61 Cr.
-Debtor days have increased from 70.81 to 116.43 days.
Competition
– The industry trades at a mean P/E of 32.8x. Brigade Enterpr. trades at the industry’s max P/E of 421.32x. PURVA trades at a P/E of 22.4x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. PURVA has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 5.1%. The max 1- month return was given by Puravankara: a return of 14.54 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 181.0 cr compared to Rs 182.0 cr for period ended Jun 2020, a fall of 0.5%
Operating Profits reported at Rs 25.0 cr for period ended Jun 2021 vis-vis 58.0 for period ended Jun 2020 .
Operating Margins contracted -1805.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 6.5 compared to Rs 0.37 for previous quarter ended Mar 2021 and Rs -0.71 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 959.0 cr for period ended TTM vis-vis sales of Rs 961.0 cr for the period ended Mar 2021, a fall of 0.2%. The 3 year sales cagr stood at -22.4%.
Operating margins shrank to 26.0% for period ended TTM vis-vis 29.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 166.0 cr for period ended TTM vis-vis sales of Rs -5.0 cr for the period ended Mar 2021, rising 103.0%.
Company recorded a healthy Net Profit CAGR of 13.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 181% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is -43% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 516% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 16.37% vis-vis 16.33% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 6.7% vis-vis 6.94% for Jun 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.52% over past five years.
– has a low return on equity of 3.34% for last 3 years.
-Earnings include an other income of Rs.445.61 Cr.
-Debtor days have increased from 70.81 to 116.43 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 109.93 and is trading at 157.0 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
