Mehabe score: 1 G Factor: 1 Piotski Score: 6 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 6.
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” [1]
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. Site:AKG Main Symbol:AKG
Stock trades at 45.2, below its 50dma 45.27. However it is trading above its 200dma 40.07. 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 45.27.
The 52 week high is at 112.70 and the 52week low is at 21.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.69% over past five years.
– has a low return on equity of 5.90% for last 3 years.
Competition
– The industry trades at a mean P/E of 41.3x. Adani Enterp. trades at the industry’s max P/E of 167.47x. AKG trades at a P/E of 36.5x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. AKG has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 0.1%. The max 1- month return was given by MMTC: a return of 21.59 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 35.21 cr compared to Rs 22.7 cr for period ended Dec 2020, a rise of 55.1% .
vis-vis 0.63 for period ended Dec 2020 .
Operating Margins contracted -84.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.68 cr for period ended Dec 2021 and operating profit margin at 1.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.32 compared to Rs 0.3 for previous quarter ended Sep 2021 and Rs 0.3 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 100.0 cr for period ended TTM vis-vis sales of Rs 78.0 cr for the period ended Mar 2021, a healthy growth of 22.0%. The 3 year sales cagr stood at -5.4%.
Net Profit reported at Rs 1.0 cr for period ended TTM vis-vis sales of Rs 1.0 cr for the period ended Mar 2021,
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 5.0% compared to 6.0% over the last 3 Years. – The stock has given a return of -49% on a 1 Year basis vis-vis a return of 28% over the last 3 Years. – The compounded sales growth on a TTM bassis is 46% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is -66% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.69% over past five years.
– has a low return on equity of 5.90% 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 45.27 and is trading at 45.2. 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
