Mehabe score: 1 G Factor: 0 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 0 and Piotski score of 4.
Description
Sical Logistics is a leading integrated multimodal logistics solutions provider.Site:SICALMain Symbol:SICAL
Stock trades at 13.2, above its 50dma 12.49. However it is trading below its 200dma 13.68. The stock remains weak though short term bullish momentum supports price action. It needs to close above 13.68 for bullish price action to continue
The 52 week high is at 21.98 and the 52week low is at 8.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -5.64%
-The company has delivered a poor sales growth of -10.04% over past five years.
-Promoter holding is low: 27.38%
-Contingent liabilities of Rs.337.99 Cr.
-Promoters have pledged 48.58% of their holding.
– has high debtors of 154.23 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 31.9x. Mahindra Logis. trades at the industry’s max P/E of 94.2x. SICAL trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 6.0. SICAL has a G-Factor of 0 and Piotski scoreof 4.
– Average 1 month return for industry is 29.2%. The max 1- month return was given by Sindhu Trade: a return of 177.68 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 74.0 cr compared to Rs 137.0 cr for period ended Jun 2020, a fall of 46.0%
Company reported negative operating profit of Rs -9.0 cr for period ended Jun 2021. For same period last year, operating profit was 4.0
The EPS for Jun 2021 was Rs -5.91 compared to Rs -188.63 for previous quarter ended Mar 2021 and Rs -4.43 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 441.0 cr for period ended TTM vis-vis sales of Rs 504.0 cr for the period ended Mar 2021, a fall of 14.3%. The 3 year sales cagr stood at -36.6%.
Operating margins shrank to -9.0% for period ended TTM vis-vis -3.0% for period ended Mar 2021, contraction of 600.0 bps.
Net Profit reported at Rs -1168.0 cr for period ended TTM vis-vis sales of Rs -1160.0 cr for the period ended Mar 2021, falling 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 stock has given a return of 34% on a 1 Year basis vis-vis a return of -57% over the last 3 Years. – The compounded sales growth on a TTM bassis is -44% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is -762% 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 0.03% vis-vis 0.02% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 72.3% vis-vis 65.39% for Mar 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -5.64%
-The company has delivered a poor sales growth of -10.04% over past five years.
-Promoter holding is low: 27.38%
-Contingent liabilities of Rs.337.99 Cr.
-Promoters have pledged 48.58% of their holding.
– has high debtors of 154.23 days.
-‘s cost of borrowing seems high
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 12.49 and is trading at 13.2 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
