Mehabe score: 2 G Factor: 3 Piotski Score: 2 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 2.
Description
Globus Power Generation Ltd was established in 1985. The Company is engaged in the business of making strategic investments in the infrastructure sector and particularly power generation business and acquisition of portfolio of wind / biomass power plants and to make them part of their group.
[1] Site:GLOBUSCON Main Symbol:GLOBUSCON
Stock trades at 61.8, above its 50dma 0.25. It also trades above its 200dma 0.21. The stock remains bullish on techicals
The 52 week high is at 0.35 and the 52week low is at 0.19
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 40.47 times its book value
– has low interest coverage ratio.
– has a low return on equity of -2.34% for last 3 years.
Competition
– The industry trades at a mean P/E of 35.7x. Brigade Enterpr. trades at the industry’s max P/E of 115.53x. GLOBUSCON trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. GLOBUSCON has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is -6.4%. The max 1- month return was given by Brigade Enterpr.: a return of 8.05 %
Quarterly Results
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Company reported negative operating profit of Rs -0.15 cr for period ended Dec 2021. For same period last year, operating profit was -0.1.
The EPS for quarter ended Dec 2021 is Rs -0.02 compared to Rs -0.02 for previous quarter ended Sep 2021 and Rs -0.01 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.0 cr for period ended TTM vis-vis sales of Rs -0.0 cr for the period ended Mar 2021,
Net Profit reported at Rs -23.0 cr for period ended TTM vis-vis sales of Rs -23.0 cr for the period ended Mar 2021,
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 stock has given a return of 1090% on a 1 Year basis vis-vis a return of 112% over the last 3 Years. – The compounded sales growth on a TTM bassis is -75% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is -28% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 8.32% vis-vis 8.32% for Sep 2021
Conclusion
– is almost debt free. – Stock is trading at 40.47 times its book value
– has low interest coverage ratio.
– has a low return on equity of -2.34% for last 3 years.
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 0.25 and is trading at 61.8 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
