Mehabe score: 2 G Factor: 0 Piotski Score: 3 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 0 and Piotski score of 3.
Description
Company is in business of cement production and is part Jaypee Group. Company is having 2 manufacturing Plants situated in Andhra Pradesh. [1]
Plant operations of the Company are
at halt due to shortage of working capital and consequential attachment of stocks and bank accounts of the Company by the GST authorities and Power disconnection by the concerned Electricity Board. Site:ANDHRACEMT Main Symbol:ANDHRACEMT
Stock trades at 15.2, below its 50dma 16.73 and below its 200dma 16.1. The stock remains bearish on technicals
The 52 week high is at 37.50 and the 52week low is at 5.13
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -79.73% over past five years.
-Promoters have pledged 75.00% of their holding.
– has high debtors of 27995.50 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 14.0x. India Cements trades at the industry’s max P/E of 43.96x. ANDHRACEMT trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. ANDHRACEMT has a G-Factor of 0 and Piotski scoreof 3.
– Average 1 month return for industry is -14.1%. The max 1- month return was given by Orient Cement: a return of -8.68 %
Quarterly Results
.
Company reported negative operating profit of Rs -6.0 cr for period ended Dec 2021. For same period last year, operating profit was -6.0.
The EPS for quarter ended Dec 2021 is Rs -1.86 compared to Rs -1.96 for previous quarter ended Sep 2021 and Rs -1.73 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021,
Net Profit reported at Rs -212.0 cr for period ended TTM vis-vis sales of Rs -205.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 119.0 cr for period ended Mar 2021 vis-vis Rs 117.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 160% on a 1 Year basis vis-vis a return of 61% over the last 3 Years. – The compounded sales growth on a TTM bassis is -100% vis-vis a compounded sales growth of -94% over the last 3 Years. – The compounded profit growth on a TTM basis is 2% vis-vis a compounded profit growth of -45% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 2.53% vis-vis 2.82% for Sep 2021 – Public shareholding has risen for the period ended Dec 2021. The Dec 2021 public holding stood at 18.21% vis-vis 15.78% for Sep 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -79.73% over past five years.
-Promoters have pledged 75.00% of their holding.
– has high debtors of 27995.50 days.
-‘s cost of borrowing seems high
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 16.73 and is trading at 15.2. 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
