Mehabe score: 1 G Factor: 4 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 4 and Piotski score of 4.
Description
Ahlada Engineers is engaged in Manufacturing of Doors, Windows and their frames and clean room equipments.Site:AHLADAMain Symbol:www.nseindia.com
Stock trades at 180.0, below its 50dma 185.1. However it is trading above its 200dma 124.81. 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 185.1.
The 52 week high is at 248.00 and the 52week low is at 40.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 7.47% over past five years.
– has a low return on equity of 9.28% for last 3 years.
Competition
– The industry trades at a mean P/E of 15.1x. Ratnamani Metals trades at the industry’s max P/E of 35.55x. AHLADA trades at a P/E of 20.8x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 8.0. AHLADA has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is -0.2%. The max 1- month return was given by Sarda Energy: a return of 20.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 52.37 cr compared to Rs 21.44 cr for period ended Jun 2020, a rise of 144.3%
Operating Profits reported at Rs 10.17 cr for period ended Jun 2021 vis-vis 7.42 for period ended Jun 2020 .
Operating Margins contracted -1518.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.62 compared to Rs 2.48 for previous quarter ended Mar 2021 and Rs 2.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 190.0 cr for period ended TTM vis-vis sales of Rs 159.0 cr for the period ended Mar 2021, a healthy growth of 16.3%. The 3 year sales cagr stood at -2.8%.
Operating margins shrank to 17.0% for period ended TTM vis-vis 19.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 9.1%.
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 301% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 44% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 59% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Conclusion
– – The company has delivered a poor sales growth of 7.47% over past five years.
– has a low return on equity of 9.28% for last 3 years.
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 185.1 and is trading at 180.0. 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
