Mehabe score: 4 G Factor: 3 Piotski Score: 5 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 3 and Piotski score of 5.
Description
Embassy Office Parks REIT is to own and invest in rent or income generating real estate and related assets in India with the objective of producing stable and sustainable distributions to Unitholders.Site:EMBASSYMain Symbol:www.nseindia.com
Stock trades at 357.0, above its 50dma 343.86. It also trades above its 200dma 343.68. The stock remains bullish on techicals
The 52 week high is at 395.00 and the 52week low is at 285.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 179.63%
Weakness
– Promoter holding has decreased over last quarter: -8.69%
-Tax rate seems low
-Promoters have pledged 81.95% of their holding.
Competition
– The industry trades at a mean P/E of 51.9x. Mindspace Busine trades at the industry’s max P/E of 54.88x. EMBASSY trades at a P/E of 49.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. EMBASSY has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 2.5%. The max 1- month return was given by Embassy Off.REIT: a return of 4.81 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 738.0 cr compared to Rs 516.0 cr for period ended Jun 2020, a rise of 43.0%
Operating Profits reported at Rs 572.0 cr for period ended Jun 2021 vis-vis 418.0 for period ended Jun 2020 .
Operating Margins contracted -350.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.16 compared to Rs 0.49 for previous quarter ended Mar 2021 and Rs 2.65 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2582.0 cr for period ended TTM vis-vis sales of Rs 2457.0 cr for the period ended Mar 2021, a growth of 4.8%.
Operating margins shrank to 74.0% for period ended TTM vis-vis 75.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 699.0 cr for period ended TTM vis-vis sales of Rs 698.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1870.0 cr for period ended Mar 2021 vis-vis Rs 1696.0 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 -1% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– has been maintaining a healthy dividend payout of 179.63% – Promoter holding has decreased over last quarter: -8.69%
-Tax rate seems low
-Promoters have pledged 81.95% of their holding.
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 343.86 and is trading at 357.0 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
