Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 4.
Description
Geekay Wires is engaged in manufacturing of niche quality Galvanized Steel Wires and Nails which find applications in Power Transmission, Cable & Conductor, General Engineering, Construction etc. Site:GEEKAYWIRE Main Symbol:GEEKAYWIRE
Stock trades at 83.7, above its 50dma 83.22. However it is trading below its 200dma 84.52. The stock remains weak though short term bullish momentum supports price action. It needs to close above 84.52 for bullish price action to continue
The 52 week high is at 112.90 and the 52week low is at 69.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is providing a good dividend yield of 4.89%.
– is expected to give good quarter
– has delivered good profit growth of 57.60% CAGR over last 5 years
Weakness
– Earnings include an other income of Rs.14.61 Cr.
-Promoter holding has decreased over last 3 years: -6.12%
Competition
– The industry trades at a mean P/E of 35.7x. Ultracab India trades at the industry’s max P/E of 98.39x. GEEKAYWIRE trades at a P/E of 14.4x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. GEEKAYWIRE has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 4.3%. The max 1- month return was given by Dynamic Cables: a return of 48.26 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 63.99 cr compared to Rs 52.71 cr for period ended Dec 2020, a rise of 21.4% .
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Company reported negative operating profit of Rs -1.75 cr for period ended Dec 2021. For same period last year, operating profit was 3.4.
The EPS for quarter ended Dec 2021 is Rs 1.82 compared to Rs 1.73 for previous quarter ended Sep 2021 and Rs 2.09 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 222.0 cr for period ended TTM vis-vis sales of Rs 170.0 cr for the period ended Mar 2021, a healthy growth of 23.4%. The 3 year sales cagr stood at 0.6%.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 26.0% 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 15.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 8% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is 32% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -20% vis-vis a compounded profit growth of 98% over the last 3 Years.
Ratios
Conclusion
– Stock is providing a good dividend yield of 4.89%.
– is expected to give good quarter
– has delivered good profit growth of 57.60% CAGR over last 5 years – Earnings include an other income of Rs.14.61 Cr.
-Promoter holding has decreased over last 3 years: -6.12%
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 83.22 and is trading at 83.7 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
