Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 4.
Description
Vipul Ltd is engaged in the business of construction and real estate development, development and management of Commercial premises and related activities.#
Main Points
Projects
The company has completed various residential and commercial projects such as Vipul Gardens, Vipul Greens, Belmonte, Vipul Floors, etc. in Gurugram.#Site:VIPULLTDMain Symbol:VIPUL
Stock trades at 28.8, below its 50dma 33.99. However it is trading above its 200dma 28.27. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 33.99.
The 52 week high is at 41.95 and the 52week low is at 12.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -27.43% over past five years.
– has a low return on equity of -10.76% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 68.59% of their holding.
– has high debtors of 3254.01 days.
Competition
– The industry trades at a mean P/E of 32.6x. Phoenix Mills trades at the industry’s max P/E of 202.22x. VIPULLTD trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. VIPULLTD has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is -9.2%. The max 1- month return was given by Oberoi Realty: a return of -3.29 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 17.9 cr compared to Rs 2.16 cr for period ended Jun 2020, a rise of 728.7%
Company reported operating profit of Rs 1.11 cr for period ended Jun 2021, operating profit margin at 6.2 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs -0.35 compared to Rs -0.74 for previous quarter ended Mar 2021 and Rs -0.78 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 53.0 cr for period ended TTM vis-vis sales of Rs 37.0 cr for the period ended Mar 2021, a healthy growth of 30.2%. The 3 year sales cagr stood at -38.3%.
Operating margins expanded to -90.0% for period ended TTM vis-vis -141.0% for period ended Mar 2021, expansion of 5100.0 bps.
Net Profit reported at Rs -50.0 cr for period ended TTM vis-vis sales of Rs -56.0 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 258.0 cr for period ended Mar 2021 vis-vis Rs 116.0 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 -19.0% compared to -11.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -57% vis-vis a compounded sales growth of -49% over the last 3 Years. – The compounded profit growth on a TTM basis is -29% 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 1.09% vis-vis 1.68% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 35.48% vis-vis 34.89% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -27.43% over past five years.
– has a low return on equity of -10.76% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 68.59% of their holding.
– has high debtors of 3254.01 days.
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 33.99 and is trading at 28.8. 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
