Mehabe score: 5 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
Godha Cabcon and Insulation Ltd is engaged in manufacture of electronic cables & conductor (insulated wire and cable made of steel, copper and aluminium).[1] Site:GODHA Main Symbol:GODHA
Stock trades at 28.0, above its 50dma 17.01. It also trades above its 200dma 8.69. The stock remains bullish on techicals
The 52 week high is at 28.00 and the 52week low is at 1.62
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 25.48 times its book value
-Promoter holding has decreased over last quarter: -3.43%
– has a low return on equity of 1.20% for last 3 years.
-Earnings include an other income of Rs.0.69 Cr.
– has high debtors of 214.37 days.
Competition
– The industry trades at a mean P/E of 21.6x. Godha Cabcon trades at the industry’s max P/E of 756.96x. GODHA trades at a P/E of 757.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. GODHA has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 13.5%. The max 1- month return was given by Godha Cabcon: a return of 61.75 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 1.78 cr compared to Rs 26.31 cr for period ended Mar 2021, a fall of 93.2%
.
vis-vis 0.78 for period ended Mar 2021 .
Operating Margins expanded 1388.9 bps for period ended Mar 2022 vis-vis Mar 2021.
Company reported operating profit of Rs 0.3 cr for period ended Mar 2022 and operating profit margin at 16.9 % for same period.
The EPS for quarter ended Mar 2022 is Rs 0.01 compared to Rs 0.0 for previous quarter ended Dec 2021 and Rs 0.04 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 35.33 cr for period ended Mar 2022 vis-vis sales of Rs 32.4 cr for the period ended Mar 2021, a growth of 8.3%. The 3 year sales cagr stood at -21.4%.
Operating margins expanded to 4.02% for period ended Mar 2022 vis-vis -1.11% for period ended Mar 2021, expansion of 513.0 bps.
Net Profit reported at Rs 0.82 cr for period ended Mar 2022 vis-vis sales of Rs -0.38 cr for the period ended Mar 2021, rising 146.3%.
Company recorded a healthy Net Profit CAGR of 31.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -1.69 cr for period ended Mar 2021
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 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 1263% on a 1 Year basis vis-vis a return of 210% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is 316% vis-vis a compounded profit growth of 32% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 25.48 times its book value
-Promoter holding has decreased over last quarter: -3.43%
– has a low return on equity of 1.20% for last 3 years.
-Earnings include an other income of Rs.0.69 Cr.
– has high debtors of 214.37 days.
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 17.01 and is trading at 28.0 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
