Mehabe score: 0 G Factor: 3 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 3 and Piotski score of 6.
Description
Advance Syntex Ltd is a company engaged in the business of manufacturing and trading of Metallic yarn, lacquer coated aluminium metalized polyester film, glitter powder and allied other products.[1] Site:ASYL Main Symbol:ASYL
Stock trades at 12.0, below its 50dma 25.04 and below its 200dma 27.16. The stock remains bearish on technicals
The 52 week high is at 30.50 and the 52week low is at 7.93
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.92 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.82% over past five years.
– has a low return on equity of 1.03% for last 3 years.
– has high debtors of 193.69 days.
Competition
– The industry trades at a mean P/E of 7.0x. Sangam India trades at the industry’s max P/E of 12.34x. ASYL trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. ASYL has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is -15.1%. The max 1- month return was given by Advance Syntex: a return of -2.04 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 6.29 cr compared to Rs 12.63 cr for period ended Dec 2020, a fall of 50.2%
.
vis-vis 1.11 for period ended Dec 2020 .
Operating Margins contracted -783.5 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.06 cr for period ended Dec 2021 and operating profit margin at 1.0 % for same period.
The EPS for quarter ended Dec 2021 is Rs -1.21 compared to Rs -1.88 for previous quarter ended Sep 2021 and Rs -0.22 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 33.01 cr for period ended TTM vis-vis sales of Rs 41.57 cr for the period ended Mar 2021, a fall of 25.9%. The 3 year sales cagr stood at -25.2%.
Operating margins shrank to 2.18% for period ended TTM vis-vis 6.74% for period ended Mar 2021, contraction of 456.0 bps.
Net Profit reported at Rs -6.16 cr for period ended TTM vis-vis sales of Rs -2.86 cr for the period ended Mar 2021, 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -14.0% compared to 1.0% over the last 3 Years. – The stock has given a return of -1% on a 1 Year basis vis-vis a return of -20% over the last 3 Years. – The compounded sales growth on a TTM bassis is -25% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is -191% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 40.24% vis-vis 40.24% for Sep 2021
Conclusion
– Stock is trading at 0.92 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.82% over past five years.
– has a low return on equity of 1.03% for last 3 years.
– has high debtors of 193.69 days.
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 25.04 and is trading at 12.0. 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
