Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
Cantabil Retail India Ltd was incorporated in 1989 and started its readymade garments manufacturing and retailing business in the year 2000. # #
Main Points
Products and Brands
Cantabil caters to all three segments with a wide range of products:
Men’s wear – Formals, Casuals, Ultra Casuals, Woollen, Knitwear & Accessories
Women’s Wear (introduced in 2007)- Formals, Casuals, Woollen/Knitwear
Kids Wear (introduced in 2019)- Casuals (Culottes, dresses, etc.)Site:CANTABIL
Market Cap:
Rs 627 cr
Price:
384.0
Trading pe:
90.3x
Book-value:
66.3/share
Div yield:
0.26 %
Earning yield:
3.23%
Face-value:
10.0/share
52week high:
444.95
52week low:
222.00
Technical Analysis
Stock trades at 384.0, above its 50dma 377.63. It also trades above its 200dma 352.82. The stock remains bullish on techicals
The 52 week high is at 444.95 and the 52week low is at 222.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 36.39% CAGR over last 5 years
Weakness
– Stock is trading at 5.79 times its book value
– has low interest coverage ratio.
Competition
– The industry trades at a mean P/E of 21.4x. Cantabil Retail trades at the industry’s max P/E of 90.32x. CANTABIL trades at a P/E of 90.3x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. CANTABIL has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by PDS Multi.: a return of 33.5 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 92.83 cr compared to Rs 99.91 cr for period ended Mar 2020, a fall of 7.1%
Operating Profits reported at Rs 24.39 cr for period ended Mar 2021 vis-vis 21.05 for period ended Mar 2020 .
Operating Margins expanded 520.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.46 compared to Rs 6.2 for previous quarter ended Dec 2020 and Rs 2.79 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 252.0 cr for period ended Mar 2021 vis-vis sales of Rs 338.0 cr for the period ended Mar 2020, a fall of 34.1%. The 3 year sales cagr stood at 8.7%.
Operating margins shrank to 24.0% for period ended Mar 2021 vis-vis 25.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs 16.0 cr for the period ended Mar 2020, falling 60.0%.
Company reported a poor Net Profit CAGR of -20.6% 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 14.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 61% on a 1 Year basis vis-vis a return of 47% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of 29% over the last 3 Years. – The compounded profit growth on a TTM basis is -59% vis-vis a compounded profit growth of 59% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.54% vis-vis 25.63% for Dec 2020
Conclusion
– has delivered good profit growth of 36.39% CAGR over last 5 years – Stock is trading at 5.79 times its book value
– has low interest coverage ratio.
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 377.63 and is trading at 384.0 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
