Mehabe score: 2 G Factor: 2 Piotski Score: 2 The stock has a rating OBSERVE & 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 2 and Piotski score of 2.
Description
Arihant Foundations & Housing is engaged in the business of constructions of residential,commercial complexes and IT parks.Site:ARIHANT
Market Cap:
Rs 23.2 cr
Price:
27.0
Trading pe:
x
Book-value:
120/share
Div yield:
0.00 %
Earning yield:
-1.45%
Face-value:
10.0/share
52week high:
31.35
52week low:
14.10
Technical Analysis
Stock trades at 27.0, above its 50dma 23.84. It also trades above its 200dma 20.93. The stock remains bullish on techicals
The 52 week high is at 31.35 and the 52week low is at 14.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.22 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -13.92% over past five years.
– has a low return on equity of -2.61% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 321.99 days.
Competition
– The industry trades at a mean P/E of 37.3x. Phoenix Mills trades at the industry’s max P/E of 266.33x. ARIHANT trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. ARIHANT has a G-Factor of 2 and Piotski scoreof 2.
– Average 1 month return for industry is 7.9%. The max 1- month return was given by Arih.Found.Hsg.: a return of 26.76 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 9.43 cr compared to Rs 11.07 cr for period ended Dec 2019, a fall of 14.8%
Operating Profits reported at Rs 1.05 cr for period ended Dec 2020 vis-vis 0.7 for period ended Dec 2019 .
Operating Margins expanded 481.1 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 1.45 compared to Rs -0.8 for previous quarter ended Sep 2020 and Rs 0.65 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.48 cr for period ended TTM vis-vis sales of Rs 46.84 cr for the period ended Mar 2020, a fall of 5.3%. The 3 year sales cagr stood at -12.2%.
Operating margins shrank to -40.83% for period ended TTM vis-vis -39.11% for period ended Mar 2020, contraction of 172.0 bps.
Net Profit reported at Rs -9.31 cr for period ended TTM vis-vis sales of Rs -6.74 cr for the period ended Mar 2020, falling 0%.
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 stock has given a return of 66% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -85% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 8.74% vis-vis 9.58% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 48.39% vis-vis 47.55% for Dec 2020
Conclusion
– Stock is trading at 0.22 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -13.92% over past five years.
– has a low return on equity of -2.61% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 321.99 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 23.84 and is trading at 27.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
