Mehabe score: 2 G Factor: 3 Piotski Score: 5 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 5.
Description
Rollatainers is engaged in the business of encompassing research, manufacturing and marketing Lined and mono Cartons and Packaging Machines.Site:ROLLTMain Symbol:ROLLT
Stock trades at 2.25, below its 50dma 2.59 and below its 200dma 2.83. The stock remains bearish on technicals
The 52 week high is at 5.11 and the 52week low is at 1.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.03 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.61% over past five years.
– has a low return on equity of -23.79% for last 3 years.
-Earnings include an other income of Rs.32.01 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 14.5x. Huhtamaki India trades at the industry’s max P/E of 37.35x. ROLLT trades at a P/E of x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 9.0. ROLLT has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 8.4%. The max 1- month return was given by Cosmo Films: a return of 18.37 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2.39 cr compared to Rs 8.44 cr for period ended Jun 2020, a fall of 71.7%
Company reported negative operating profit of Rs -2.5 cr for period ended Jun 2021. For same period last year, operating profit was -3.65
The EPS for Jun 2021 was Rs -0.18 compared to Rs 0.56 for previous quarter ended Mar 2021 and Rs -0.34 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 52.33 cr for period ended TTM vis-vis sales of Rs 58.38 cr for the period ended Mar 2021, a fall of 11.6%. The 3 year sales cagr stood at -27.1%.
Operating margins expanded to -8.77% for period ended TTM vis-vis -9.59% for period ended Mar 2021, expansion of 82.0 bps.
Net Profit reported at Rs -8.73 cr for period ended TTM vis-vis sales of Rs -4.5 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -1.44 cr for period ended Mar 2021 vis-vis Rs -25.02 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 -8.0% compared to -24.0% over the last 3 Years. – The stock has given a return of -26% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -55% vis-vis a compounded sales growth of -25% over the last 3 Years. – The compounded profit growth on a TTM basis is -20% 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 3.8% vis-vis 4.76% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 21.25% vis-vis 20.29% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.03 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.61% over past five years.
– has a low return on equity of -23.79% for last 3 years.
-Earnings include an other income of Rs.32.01 Cr.
-‘s cost of borrowing seems high
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 2.59 and is trading at 2.25. 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
