Mehabe score: 1 G Factor: 2 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 2 and Piotski score of 6.
Description
Incorporated in 1962, APLAB Limited is engaged in the manufacturing & marketing of professional electronic equipment business. Site:APLAB Main Symbol:APLAB
Stock trades at 20.0, below its 50dma 23.08. However it is trading above its 200dma 19.76. 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 23.08.
The 52 week high is at 31.20 and the 52week low is at 9.26
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.64% over past five years.
-Contingent liabilities of Rs.16.57 Cr.
-Earnings include an other income of Rs.1.35 Cr.
Competition
– The industry trades at a mean P/E of 53.1x. Centum Electron trades at the industry’s max P/E of 126.77x. APLAB trades at a P/E of x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 8.0. APLAB has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is -4.4%. The max 1- month return was given by Shivalik Bimetal: a return of 9.7 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 14.85 cr compared to Rs 14.68 cr for period ended Dec 2020, a rise of 1.2% .
vis-vis 1.13 for period ended Dec 2020 .
Operating Margins expanded 509.7 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1.9 cr for period ended Dec 2021 and operating profit margin at 12.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.78 compared to Rs -2.62 for previous quarter ended Sep 2021 and Rs -0.47 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 55.28 cr for period ended TTM vis-vis sales of Rs 53.02 cr for the period ended Mar 2021, a growth of 4.1%. The 3 year sales cagr stood at 1.3%.
Operating margins shrank to 4.27% for period ended TTM vis-vis 9.3% for period ended Mar 2021, contraction of 503.0 bps.
Net Profit reported at Rs -2.08 cr for period ended TTM vis-vis sales of Rs -0.39 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -1.02 cr for period ended Mar 2021 vis-vis Rs -23.38 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 50% on a 1 Year basis vis-vis a return of 50% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is -270% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 40.69% vis-vis 40.69% for Sep 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -5.64% over past five years.
-Contingent liabilities of Rs.16.57 Cr.
-Earnings include an other income of Rs.1.35 Cr.
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 23.08 and is trading at 20.0. 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
