Mehabe score: 2 G Factor: 2 Piotski Score: 5 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 5.
Description
Banka BioLoo Limited is a pioneer in Water, Sanitation and Hygiene (WaSH) infrastructure. We provide sanitation infrastructure and turnkey, human waste management solutions and services, involving innovative and simple bio-digester technology patented by Defence Research and Development Organization (DRDO), the R&D arm of the Indian Ministry of Defence. We are a licensee (through transfer of technology) and have partnered DRDO for technology commercialization for large-scale deployment of sanitation systems. Further, we also provide sanitation operations and maintenance (O&M) services to the Indian Railways and ensure a pleasant travel experience for millions of passengers every day.Site:BANKAMain Symbol:www.nseindia.com
Stock trades at 63.2, below its 50dma 69.04. However it is trading above its 200dma 62.41. 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 69.04.
The 52 week high is at 86.45 and the 52week low is at 27.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Tax rate seems low
Competition
– The industry trades at a mean P/E of 22.6x. Jubilant Ingrevia trades at the industry’s max P/E of 164.34x. BANKA trades at a P/E of 29.4x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. BANKA has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -8.7%. The max 1- month return was given by Jubilant Ingrevia: a return of 3.92 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 8.03 cr compared to Rs 6.63 cr for period ended Jun 2020, a rise of 21.1%
Operating Profits reported at Rs 1.05 cr for period ended Jun 2021 vis-vis 1.34 for period ended Jun 2020 .
Operating Margins contracted -713.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.63 compared to Rs 0.69 for previous quarter ended Mar 2021 and Rs 0.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 31.86 cr for period ended TTM vis-vis sales of Rs 30.46 cr for the period ended Mar 2021, a growth of 4.4%. The 3 year sales cagr stood at -3.5%.
Operating margins shrank to 9.79% for period ended TTM vis-vis 11.16% for period ended Mar 2021, contraction of 137.0 bps.
Net Profit reported at Rs 2.04 cr for period ended TTM vis-vis sales of Rs 2.21 cr for the period ended Mar 2021, falling 8.3%.
Company reported a poor Net Profit CAGR of -23.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.91 cr for period ended Mar 2021 vis-vis Rs -6.0 cr for period ended Mar 2020
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 8.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 61% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -36% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is -63% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Conclusion
– has reduced debt. – Tax rate seems low
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 69.04 and is trading at 63.2. 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
