Mehabe score: 4 G Factor: 4 Piotski Score: 3 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 3.
Description
Genomic Valley Biotech is engaged in the busines of Horticulture Business. Site:GVBL Main Symbol:GVBL
Stock trades at 22.5, above its 50dma 13.24. It also trades above its 200dma 9.77. The stock remains bullish on techicals
The 52 week high is at 23.60 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– has low interest coverage ratio.
– has a low return on equity of -0.28% for last 3 years.
-Debtor days have increased from 56.45 to 104.29 days.
Competition
– The industry trades at a mean P/E of 28.7x. Indian Energy Ex trades at the industry’s max P/E of 90.01x. GVBL trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. GVBL has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 4.9%. The max 1- month return was given by Century Plyboard: a return of 12.98 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.03 cr compared to Rs 0.07 cr for period ended Sep 2020, a fall of 57.1%
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Company reported negative operating profit of Rs -0.01 cr for period ended Sep 2021. For same period last year, operating profit was 0.02.
The EPS for quarter ended Sep 2021 is Rs -0.2 compared to Rs -0.36 for previous quarter ended Jun 2021 and Rs -0.1 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.16 cr for period ended TTM vis-vis sales of Rs 0.21 cr for the period ended Mar 2021, a fall of 31.2%. The 3 year sales cagr stood at -45.5%.
Operating margins shrank to -62.5% for period ended TTM vis-vis -61.9% for period ended Mar 2021, contraction of 60.0 bps.
Net Profit reported at Rs -0.56 cr for period ended TTM vis-vis sales of Rs -0.56 cr for the period ended Mar 2021,
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.48 cr for period ended Mar 2021 vis-vis Rs 0.44 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -12.0% compared to 0.0% over the last 3 Years. – The stock has given a return of -5% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -72% vis-vis a compounded sales growth of -29% over the last 3 Years. – The compounded profit growth on a TTM basis is -800% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 32.15% vis-vis 32.15% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free. – has low interest coverage ratio.
– has a low return on equity of -0.28% for last 3 years.
-Debtor days have increased from 56.45 to 104.29 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 13.24 and is trading at 22.5 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
