Mehabe score: 6 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
GTN Industries is engaged in the business of Spinning and Doubling of Yarn.Site:GTNINDMain Symbol:GTNINDS
Stock trades at 20.2, above its 50dma 11.54. It also trades above its 200dma 9.82. The stock remains bullish on techicals
The 52 week high is at 26.35 and the 52week low is at 7.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.77 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.07% over past five years.
– has a low return on equity of -17.09% for last 3 years.
-Promoters have pledged 51.21% of their holding.
Competition
– The industry trades at a mean P/E of 8.4x. GTN Industries trades at the industry’s max P/E of 37.6x. GTNIND trades at a P/E of 37.6x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. GTNIND has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 4.3%. The max 1- month return was given by Sutlej Textiles: a return of 20.16 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 114.69 cr compared to Rs 78.82 cr for period ended Sep 2020, a rise of 45.5%
Operating Profits reported at Rs 20.57 cr for period ended Sep 2021 vis-vis 3.42 for period ended Sep 2020 .
Operating Margins expanded 1359.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs -0.44 compared to Rs 0.66 for previous quarter ended Jun 2021 and Rs -1.57 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 400.0 cr for period ended TTM vis-vis sales of Rs 310.0 cr for the period ended Mar 2021, a healthy growth of 22.5%. The 3 year sales cagr stood at 3.9%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 3.0 cr for period ended TTM vis-vis sales of Rs -6.0 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 35.0 cr for period ended Mar 2021 vis-vis Rs 8.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -13.0% compared to -17.0% over the last 3 Years. – The stock has given a return of 146% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 106% vis-vis a compounded profit growth of 7% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.59% vis-vis 25.59% for Jun 2021
Conclusion
– Stock is trading at 0.77 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.07% over past five years.
– has a low return on equity of -17.09% for last 3 years.
-Promoters have pledged 51.21% of their holding.
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 11.54 and is trading at 20.2, thus bullish price action wise.
