Mehabe score: 3 G Factor: 2 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 2 and Piotski score of 4.
Description
Schneider Electric Infrastructure is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment.(Source : 201903 Annual Report Page No:115)Site:SCHNEIDER
Market Cap:
Rs 3,108 cr
Price:
130.0
Trading pe:
259.0x
Book-value:
4.39/share
Div yield:
0.00 %
Earning yield:
1.19%
Face-value:
2.00/share
52week high:
141.00
52week low:
67.60
Technical Analysis
Stock trades at 130.0, above its 50dma 114.62. It also trades above its 200dma 98.58. The stock remains bullish on techicals
The 52 week high is at 141.00 and the 52week low is at 67.60
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 29.62 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.55% over past five years.
– has a low return on equity of -4.57% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.7x. Schneider Elect. trades at the industry’s max P/E of 259.02x. SCHNEIDER trades at a P/E of 259.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. SCHNEIDER has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by Schneider Elect.: a return of 23.46 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 247.0 cr compared to Rs 230.0 cr for period ended Mar 2020, a rise of 7.4%
Company reported negative operating profit of Rs -5.0 cr for period ended Mar 2021. For same period last year, operating profit was -13.0
The EPS for Mar 2021 was Rs -0.47 compared to Rs 1.39 for previous quarter ended Dec 2020 and Rs -1.08 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1297.0 cr for period ended Mar 2021 vis-vis sales of Rs 1384.0 cr for the period ended Mar 2020, a fall of 6.7%. The 3 year sales cagr stood at -0.4%.
Operating margins expanded to 5.0% for period ended Mar 2021 vis-vis 2.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs -1.0 cr for period ended Mar 2021 vis-vis sales of Rs -30.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 11.0% compared to -5.0% over the last 3 Years. – The stock has given a return of 57% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is 138% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.08% vis-vis 0.07% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 20.47% vis-vis 16.46% for Dec 2020
Conclusion
– – Stock is trading at 29.62 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.55% over past five years.
– has a low return on equity of -4.57% for last 3 years.
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 114.62 and is trading at 130.0 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
