Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 6.
Description
G M Breweries Ltd, set up in 1981 manufactures and markets Alcoholic Beverages such as Country Liquor (CL) and Indian-made Foreign Liquor (IMFL). [1] Site:GMBREW Main Symbol:GMBREW
Stock trades at 761.0, above its 50dma 746.04. It also trades above its 200dma 626.18. The stock remains bullish on techicals
The 52 week high is at 923.00 and the 52week low is at 365.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -1.11% over past five years.
Competition
– The industry trades at a mean P/E of 46.3x. United Breweries trades at the industry’s max P/E of 125.34x. GMBREW trades at a P/E of 13.9x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. GMBREW has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 4.5%. The max 1- month return was given by Radico Khaitan: a return of 12.35 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 131.0 cr compared to Rs 112.0 cr for period ended Dec 2020, a rise of 17.0% .
vis-vis 28.0 for period ended Dec 2020 .
Operating Margins contracted -438.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 27.0 cr for period ended Dec 2021 and operating profit margin at 20.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 10.83 compared to Rs 11.95 for previous quarter ended Sep 2021 and Rs 11.55 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 444.0 cr for period ended TTM vis-vis sales of Rs 340.0 cr for the period ended Mar 2021, a healthy growth of 23.4%. The 3 year sales cagr stood at -1.5%.
Operating margins expanded to 23.0% for period ended TTM vis-vis 22.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 99.0 cr for period ended TTM vis-vis sales of Rs 80.0 cr for the period ended Mar 2021, rising 19.2%.
Company recorded a Net Profit CAGR of 6.5% 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 stock has given a return of 67% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 120% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.6% vis-vis 1.38% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 23.97% vis-vis 24.19% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter – The company has delivered a poor sales growth of -1.11% over past five years.
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 above its 50 DMA 746.04 and is trading at 761.0, thus bullish price action wise.
