Mehabe score: 1 G Factor: 1 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 1 and Piotski score of 4.
Description
Ujaas Energy is engaged in manufacturing / servicing of transformer, Generation of solar power and manufacturing, sales and services of solar power plants / projects.Site:UJAAS
Market Cap:
Rs 64.1 cr
Price:
3.2
Trading pe:
x
Book-value:
10.4/share
Div yield:
0.00 %
Earning yield:
-41.98%
Face-value:
1.00/share
52week high:
10.46
52week low:
2.26
Technical Analysis
Stock trades at 3.2, above its 50dma 3.01. However it is trading below its 200dma 3.24. The stock remains weak though short term bullish momentum supports price action. It needs to close above 3.24 for bullish price action to continue
The 52 week high is at 10.46 and the 52week low is at 2.26
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.31 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -33.85% over past five years.
-Promoter holding is low: 0.01%
– has a low return on equity of -5.83% for last 3 years.
-Contingent liabilities of Rs.51.08 Cr.
– has high debtors of 1037.48 days.
-Promoter holding has decreased over last 3 years: -62.90%
Competition
– The industry trades at a mean P/E of 28.6x. A B B trades at the industry’s max P/E of 158.77x. UJAAS trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. UJAAS has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is -0.6%. The max 1- month return was given by Ujaas Energy: a return of 10.34 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 8.0 cr compared to Rs 10.0 cr for period ended Mar 2020, a fall of 20.0%
Company reported negative operating profit of Rs -8.0 cr for period ended Mar 2021. For same period last year, operating profit was -22.0
The EPS for Mar 2021 was Rs -0.56 compared to Rs -0.27 for previous quarter ended Dec 2020 and Rs -1.15 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 35.0 cr for period ended Mar 2021 vis-vis sales of Rs 51.0 cr for the period ended Mar 2020, a fall of 45.7%. The 3 year sales cagr stood at -52.9%.
Operating margins shrank to -58.0% for period ended Mar 2021 vis-vis -16.0% for period ended Mar 2020, contraction of 4200.0 bps.
Net Profit reported at Rs -30.0 cr for period ended Mar 2021 vis-vis sales of Rs -13.0 cr for the period ended Mar 2020, 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -15.0% compared to -6.0% over the last 3 Years. – The stock has given a return of -63% on a 1 Year basis vis-vis a return of -34% over the last 3 Years. – The compounded sales growth on a TTM bassis is -31% vis-vis a compounded sales growth of -53% over the last 3 Years. – The compounded profit growth on a TTM basis is -127% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.01% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 99.99% vis-vis 99.97% for Dec 2020
Conclusion
– Stock is trading at 0.31 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -33.85% over past five years.
-Promoter holding is low: 0.01%
– has a low return on equity of -5.83% for last 3 years.
-Contingent liabilities of Rs.51.08 Cr.
– has high debtors of 1037.48 days.
-Promoter holding has decreased over last 3 years: -62.90%
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 3.01 and is trading at 3.2 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
