Mehabe score: 5 G Factor: 3 Piotski Score: 4 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 4.
Description
Shirpur Gold Refinery Ltd is operates as a metal refinery with installed capacity to refine gold and silver in Shirpur, Maharashtra.Site:SHIRPUR-GMain Symbol:SHIRPUR-G
Stock trades at 5.45, below its 50dma 6.78 and below its 200dma 8.3. The stock remains bearish on technicals
The 52 week high is at 10.80 and the 52week low is at 4.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 42.40 to 26.41 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.05% over past five years.
– has a low return on equity of -49.12% for last 3 years.
-Promoters have pledged 39.31% of their holding.
-Promoter holding has decreased over last 3 years: -29.05%
Competition
– The industry trades at a mean P/E of 15.8x. KIOCL trades at the industry’s max P/E of 31.94x. SHIRPUR-G trades at a P/E of x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 9.0. SHIRPUR-G has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 1.5%. The max 1- month return was given by Indian Metals: a return of 16.32 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1346.0 cr compared to Rs 700.0 cr for period ended Jun 2020, a rise of 92.3%
Company reported negative operating profit of Rs -20.0 cr for period ended Jun 2021. For same period last year, operating profit was -50.0
The EPS for Jun 2021 was Rs -10.87 compared to Rs -20.93 for previous quarter ended Mar 2021 and Rs -21.22 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6189.0 cr for period ended TTM vis-vis sales of Rs 4371.0 cr for the period ended Mar 2021, a healthy growth of 29.4%. The 3 year sales cagr stood at 13.2%.
Operating margins expanded to -3.0% for period ended TTM vis-vis -5.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs -215.0 cr for period ended TTM vis-vis sales of Rs -246.0 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 70.0 cr for period ended Mar 2021 vis-vis Rs 42.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -242.0% compared to -49.0% over the last 3 Years. – The stock has given a return of -45% on a 1 Year basis vis-vis a return of -61% over the last 3 Years. – The compounded sales growth on a TTM bassis is 83% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% 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 2.2% vis-vis 2.2% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 54.14% vis-vis 54.14% for Mar 2021
Conclusion
– is expected to give good quarter
-Debtor days have improved from 42.40 to 26.41 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.05% over past five years.
– has a low return on equity of -49.12% for last 3 years.
-Promoters have pledged 39.31% of their holding.
-Promoter holding has decreased over last 3 years: -29.05%
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 6.78 and is trading at 5.45. 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
