Mehabe score: 2 G Factor: 1 Piotski Score: 3 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 3.
Description
Devoted Construction is engaged in the business of Construction (During the year no business was done by the company as the company was in the process of getting listed on BSE.) Site:DCL Main Symbol:DCL
Stock trades at 4.26, below its 50dma 15.29 and below its 200dma 24.24. The stock remains bearish on technicals
The 52 week high is at 12.15 and the 52week low is at 4.48
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
– has a low return on equity of -0.38% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 29.1x. National Standar trades at the industry’s max P/E of 690.48x. DCL trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. DCL has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is -5.1%. The max 1- month return was given by Rail Vikas: a return of 8.32 %
Quarterly Results
.
Company reported negative operating profit of Rs -0.04 cr for period ended Sep 2021. For same period last year, operating profit was -0.04.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.05 cr for period ended TTM vis-vis sales of Rs 0.3 cr for the period ended Mar 2021, a fall of 500.0%.
Operating margins shrank to -120.0% for period ended TTM vis-vis -6.67% for period ended Mar 2021, contraction of 11333.0 bps.
Net Profit reported at Rs -0.06 cr for period ended TTM vis-vis sales of Rs -0.02 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.17 cr for period ended Mar 2021 vis-vis Rs -0.41 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -64% on a 1 Year basis vis-vis a return of -34% over the last 3 Years. – The compounded sales growth on a TTM bassis is -55% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 46.88% vis-vis 46.88% for Mar 2021
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of -0.38% for last 3 years.
– might be capitalizing the interest cost
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 15.29 and is trading at 4.26. 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
