Mehabe score: 1 G Factor: 1 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 1 and Piotski score of 5.
Description
Incorporated in 1990, Bartronics India Ltd. is engaged in providing solutions based on Bar Coding, Biometrics, RFID, POS, EAS, and Smart Cards etc. Site:BARTRONICS Main Symbol:BARTRONICS
Stock trades at 6.75, below its 50dma 7.36. However it is trading above its 200dma 5.15. 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 7.36.
The 52 week high is at 10.95 and the 52week low is at 2.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.28 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -10.49% over past five years.
-Promoter holding is low: 10.54%
– has a low return on equity of -37.53% for last 3 years.
-Contingent liabilities of Rs.163.17 Cr.
– might be capitalizing the interest cost
– has high debtors of 6099.00 days.
Competition
– The industry trades at a mean P/E of 32.5x. Tata Elxsi trades at the industry’s max P/E of 86.33x. BARTRONICS trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 9.0. BARTRONICS has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is -11.6%. The max 1- month return was given by Tata Elxsi: a return of 11.14 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 16.0 cr compared to Rs 15.0 cr for period ended Dec 2020, a rise of 6.7% .
vis-vis 1.0 for period ended Dec 2020 .
Operating Margins expanded 583.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 2.0 cr for period ended Dec 2021 and operating profit margin at 12.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs -3.66 compared to Rs -3.68 for previous quarter ended Sep 2021 and Rs -3.81 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 66.0 cr for period ended TTM vis-vis sales of Rs 63.0 cr for the period ended Mar 2021, a growth of 4.5%. The 3 year sales cagr stood at -1.5%.
Net Profit reported at Rs -49.0 cr for period ended TTM vis-vis sales of Rs -49.0 cr for the period ended Mar 2021,
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 167% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 5% vis-vis a compounded profit growth of -6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 87.5% vis-vis 87.5% for Sep 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.28 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -10.49% over past five years.
-Promoter holding is low: 10.54%
– has a low return on equity of -37.53% for last 3 years.
-Contingent liabilities of Rs.163.17 Cr.
– might be capitalizing the interest cost
– has high debtors of 6099.00 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 7.36 and is trading at 6.75. 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
