Mehabe score: 7 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
Rajnandini Metal is engaged in carrying the business of manufacturing, trading or otherwise deal in the Steel, Iron, Iron Alloy, Castings, various kind of chemicals, furnace oils, petrolium products.Site:RAJMETMain Symbol:www.nseindia.com
Stock trades at 184.0, above its 50dma 150.12. It also trades above its 200dma 92.87. The stock remains bullish on techicals
The 52 week high is at 184.10 and the 52week low is at 16.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 40.38 to 21.85 days.
Weakness
– Stock is trading at 11.58 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 49.7x. 3M India trades at the industry’s max P/E of 180.27x. RAJMET trades at a P/E of 44.7x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. RAJMET has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -5.1%. The max 1- month return was given by Rajnandini Metal: a return of 20.52 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 182.3 cr compared to Rs 29.32 cr for period ended Mar 2020, a rise of 521.8%
Operating Profits reported at Rs 3.1 cr for period ended Jun 2021 vis-vis 0.87 for period ended Mar 2020 .
Operating Margins contracted -126.7 bps for period ended Jun 2021 vis-vis Mar 2020 .
The EPS for Jun 2021 was Rs 1.29 compared to Rs 1.33 for previous quarter ended Mar 2021 and Rs 0.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 631.0 cr for period ended Mar 2021 vis-vis sales of Rs 148.0 cr for the period ended Mar 2020, a healthy growth of 76.5%. The 3 year sales cagr stood at 64.8%.
Operating margins shrank to 2.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 5.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 80.0%.
Company recorded a healthy Net Profit CAGR of 71.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.0 cr for period ended Mar 2021 vis-vis Rs 1.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 1115% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 325% vis-vis a compounded sales growth of 65% over the last 3 Years. – The compounded profit growth on a TTM basis is 337% vis-vis a compounded profit growth of 75% over the last 3 Years.
Ratios
Conclusion
– Debtor days have improved from 40.38 to 21.85 days. – Stock is trading at 11.58 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
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 150.12 and is trading at 184.0, thus bullish price action wise.
