Mehabe score: 3 G Factor: 0 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 0 and Piotski score of 4.
Description
Bhandari Hosiery Exports is engaged in fabrics and in the manufacture and export of knitted hosiery garments such as T- Shirts, Pullovers, Sweat Shirts, Bermudas, Polo Shirts, Track Suits, Pyjamas, Lowers, Ladies Knitted Tops with embroidery and prints et(Source : 201903 Annual Report Page No: 87)Site:BHANDARI
Market Cap:
Rs 55.7 cr
Price:
3.85
Trading pe:
232.0x
Book-value:
4.96/share
Div yield:
0.26 %
Earning yield:
6.46%
Face-value:
1.00/share
52week high:
4.78
52week low:
0.99
Technical Analysis
Stock trades at 3.85, above its 50dma 2.88. It also trades above its 200dma 2.3. The stock remains bullish on techicals
The 52 week high is at 4.78 and the 52week low is at 0.99
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.78 times its book value
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 24.95%
– has a low return on equity of 7.87% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.1x. Bhandari Hosiery trades at the industry’s max P/E of 232.17x. BHANDARI trades at a P/E of 232.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. BHANDARI has a G-Factor of 0 and Piotski scoreof 4.
– Average 1 month return for industry is 14.7%. The max 1- month return was given by Bhandari Hosiery: a return of 54.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 77.75 cr compared to Rs 89.87 cr for period ended Mar 2020, a fall of 13.5%
Operating Profits reported at Rs 5.89 cr for period ended Mar 2021 vis-vis 4.6 for period ended Mar 2020 .
Operating Margins expanded 245.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.1 compared to Rs 0.09 for previous quarter ended Dec 2020 and Rs 0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 226.0 cr for period ended Mar 2021 vis-vis sales of Rs 277.0 cr for the period ended Mar 2020, a fall of 22.6%. The 3 year sales cagr stood at -3.0%.
Net Profit reported at Rs 2.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020, falling 150.0%.
Company reported a poor Net Profit CAGR of -26.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -2.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 157% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -16% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -96% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.27% vis-vis 0.27% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 74.78% vis-vis 74.78% for Dec 2020
Conclusion
– Stock is trading at 0.78 times its book value – has low interest coverage ratio.
-Promoter holding is low: 24.95%
– has a low return on equity of 7.87% for last 3 years.
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 2.88 and is trading at 3.85 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
