Mehabe score: 2 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
Cords Cable Industries is engaged in business of Electrical Wires and Cables.(Source : 201903 Annual Report Page No:41)Site:CORDSCABLEMain Symbol:CORDSCABLE
Stock trades at 54.2, below its 50dma 55.7. However it is trading above its 200dma 51.74. 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 55.7.
The 52 week high is at 83.55 and the 52week low is at 36.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.48 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.68% over past five years.
– has a low return on equity of 5.39% for last 3 years.
-Contingent liabilities of Rs.100.82 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 33.1x. Ultracab India trades at the industry’s max P/E of 72.75x. CORDSCABLE trades at a P/E of 11.3x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. CORDSCABLE has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -3.7%. The max 1- month return was given by KEI Industries: a return of 3.43 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 105.98 cr compared to Rs 83.41 cr for period ended Sep 2020, a rise of 27.1%
Operating Profits reported at Rs 9.97 cr for period ended Sep 2021 vis-vis 8.85 for period ended Sep 2020 .
Operating Margins contracted -120.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.18 compared to Rs 1.12 for previous quarter ended Jun 2021 and Rs 0.77 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 385.0 cr for period ended TTM vis-vis sales of Rs 323.0 cr for the period ended Mar 2021, a healthy growth of 16.1%. The 3 year sales cagr stood at -2.6%.
Operating margins shrank to 10.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 33.3%.
Company reported a poor Net Profit CAGR of -5.0% over the last 3 years
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 40% on a 1 Year basis vis-vis a return of -6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -22% vis-vis a compounded profit growth of -13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 48.35% vis-vis 48.35% for Jun 2021
Conclusion
– Stock is trading at 0.48 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.68% over past five years.
– has a low return on equity of 5.39% for last 3 years.
-Contingent liabilities of Rs.100.82 Cr.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 55.7 and is trading at 54.2. Shows a near term lack of buying interest.
