Mehabe score: 4 G Factor: 1 Piotski Score: 3 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 3.
Description
Visagar Polytex Limited is engaged in the business of retail, wholesale, trading and manufacturing of textiles and textile-related goods.Site:VIVIDHA
Market Cap:
Rs 32.2 cr
Price:
1.1
Trading pe:
92.0x
Book-value:
0.68/share
Div yield:
0.00 %
Earning yield:
-0.05%
Face-value:
1.00/share
52week high:
2.00
52week low:
0.30
Technical Analysis
Stock trades at 1.1, above its 50dma 0.89. It also trades above its 200dma 0.79. The stock remains bullish on techicals
The 52 week high is at 2.00 and the 52week low is at 0.30
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of -30.02% over past five years.
-Promoter holding is low: 25.12%
– has a low return on equity of -15.39% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 612.64 days.
-Promoter holding has decreased over last 3 years: -7.88%
Competition
– The industry trades at a mean P/E of 47.0x. 3M India trades at the industry’s max P/E of 190.67x. VIVIDHA trades at a P/E of 92.0x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. VIVIDHA has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 8.7%. The max 1- month return was given by Redington India: a return of 43.6 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.51 cr compared to Rs 1.77 cr for period ended Mar 2020, a fall of 71.2%
Operating Profits reported at Rs 0.62 cr for period ended Mar 2021 vis-vis 0.78 for period ended Mar 2020 .
Operating Margins expanded 7750.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.01 compared to Rs 0.01 for previous quarter ended Dec 2020 and Rs 0.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.81 cr for period ended Mar 2021 vis-vis sales of Rs 10.17 cr for the period ended Mar 2020, a fall of 111.4%. The 3 year sales cagr stood at -61.2%.
Operating margins expanded to 11.64% for period ended Mar 2021 vis-vis -132.06% for period ended Mar 2020, expansion of 14370.0 bps.
Net Profit reported at Rs 0.04 cr for period ended Mar 2021 vis-vis sales of Rs -14.35 cr for the period ended Mar 2020, rising 35975.0%.
Company reported a poor Net Profit CAGR of -69.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -0.13 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 -55.0% compared to -15.0% over the last 3 Years. – The stock has given a return of 175% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -49% vis-vis a compounded sales growth of -50% over the last 3 Years. – The compounded profit growth on a TTM basis is 17% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 74.84% vis-vis 74.84% for Dec 2020
Conclusion
– – The company has delivered a poor sales growth of -30.02% over past five years.
-Promoter holding is low: 25.12%
– has a low return on equity of -15.39% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 612.64 days.
-Promoter holding has decreased over last 3 years: -7.88%
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 0.89 and is trading at 1.1 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
