Mehabe score: 3 G Factor: 6 Piotski Score: 5 The stock has a rating 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 6 and Piotski score of 5.
Description
It was incorporated at New Delhi as “Akg Exim Private Limited” on 26th July 2005. It was founded by Mr. Rajeev Goel and his brother Mr. Sanjeev Goel. Later, in FY18, it changes its name to “AKG Exim Limited” #
It is an exporter of Indian and Thai Non-Basmati Rice in India and an Importer of Ferrous and Non-Ferrous Metal Scrap with clientele across the globe.
Main Points
Trading Business
Metal Scrap- It offers a wide range of scrap metals viz; HMS, Aluminum scrap, stainless steel scrap, stainless steel scrap, nickel scrap, etc. It also deals in Ferrous Scrap, Non-Ferrous Scrap, and reusable items. It procures setal scrap originating from Singapore, USA, West African and European countries, and sells these products in the domestic market all over IndiaSite:AKG
Market Cap:
Rs 28.5 cr
Price:
26.9
Trading pe:
26.1x
Book-value:
18.6/share
Div yield:
0.00 %
Earning yield:
8.81%
Face-value:
10.0/share
52week high:
112.70
52week low:
22.81
Technical Analysis
Stock trades at 26.9, below its 50dma 34.26 and below its 200dma 46.02. The stock remains bearish on technicals
The 52 week high is at 112.70 and the 52week low is at 22.81
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.90% for last 3 years.
-Earnings include an other income of Rs.3.23 Cr.
Competition
– The industry trades at a mean P/E of 49.3x. 3M India trades at the industry’s max P/E of 183.55x. AKG trades at a P/E of 26.1x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. AKG has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 2.0%. The max 1- month return was given by Redington India: a return of 16.57 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 26.96 cr compared to Rs 17.77 cr for period ended Dec 2019, a rise of 51.7%
Company reported operating profit of Rs 1.01 cr for period ended Mar 2021, operating profit margin at 3.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.5 compared to Rs 0.3 for previous quarter ended Dec 2020 and Rs -0.16 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 78.68 cr for period ended Mar 2021 vis-vis sales of Rs 66.52 cr for the period ended Mar 2020, a healthy growth of 15.5%. The 3 year sales cagr stood at -10.9%.
Operating margins expanded to 2.95% for period ended Mar 2021 vis-vis 0.66% for period ended Mar 2020, expansion of 229.0 bps.
Net Profit reported at Rs 1.07 cr for period ended Mar 2021 vis-vis sales of Rs 1.09 cr for the period ended Mar 2020, falling 1.9%.
Company recorded a Net Profit CAGR of 1.6% 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 -2.95 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 21% 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 -14% over the last 3 Years. – The compounded profit growth on a TTM basis is 2% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Conclusion
– has reduced debt. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.90% for last 3 years.
-Earnings include an other income of Rs.3.23 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 34.26 and is trading at 26.9. Shows a near term lack of buying interest.
