Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 3 and Piotski score of 4.
Description
Banaras Beads is engaged in the business of Handicraft items like Glass Beads Necklaces, Imitation Jewellary.Site:BANARBEADSMain Symbol:BANARBEADS
Stock trades at 95.4, above its 50dma 62.7. It also trades above its 200dma 55.14. The stock remains bullish on techicals
The 52 week high is at 100.20 and the 52week low is at 39.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -3.72% over past five years.
– has a low return on equity of 4.15% for last 3 years.
-Earnings include an other income of Rs.1.48 Cr.
-Debtor days have increased from 22.22 to 47.79 days.
Competition
– The industry trades at a mean P/E of 45.7x. Saint-Gob. Sekur trades at the industry’s max P/E of 78.65x. BANARBEADS trades at a P/E of 28.1x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. BANARBEADS has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 12.0%. The max 1- month return was given by Banaras Beads: a return of 63.69 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.39 cr compared to Rs 3.97 cr for period ended Jun 2020, a fall of 14.6%
Operating Profits reported at Rs 0.27 cr for period ended Jun 2021 vis-vis 0.82 for period ended Jun 2020 .
Operating Margins contracted -1269.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.48 compared to Rs 0.47 for previous quarter ended Mar 2021 and Rs 0.92 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.89 cr for period ended TTM vis-vis sales of Rs 20.47 cr for the period ended Mar 2021, a fall of 2.9%. The 3 year sales cagr stood at 4.7%.
Operating margins shrank to 14.18% for period ended TTM vis-vis 16.37% for period ended Mar 2021, contraction of 219.0 bps.
Net Profit reported at Rs 2.1 cr for period ended TTM vis-vis sales of Rs 2.39 cr for the period ended Mar 2021, falling 13.8%.
Company recorded a healthy Net Profit CAGR of 21.9% over the last 3 years
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 4.0% over the last 3 Years. – The stock has given a return of 141% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is -7% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 42.2% vis-vis 42.2% for Mar 2021
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -3.72% over past five years.
– has a low return on equity of 4.15% for last 3 years.
-Earnings include an other income of Rs.1.48 Cr.
-Debtor days have increased from 22.22 to 47.79 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 62.7 and is trading at 95.4 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
