Mehabe score: 3 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
Hexa Tradex Ltd is engaged in import and export agent, representative, contractor, selling agent, broker on a whole sale cash and carry basis for metals, minerals, iron and steel products, pipes, household items, general merchandise etc; and holding investments in other entities and to buy, invest in, acquire, hold shares, stocks, debentures, debenture stocks, bonds, and securities of any kind etc. Site:HEXATRADEX Main Symbol:HEXATRADEX
Stock trades at 148.0, above its 50dma 143.17. It also trades above its 200dma 131.77. The stock remains bullish on techicals
The 52 week high is at 235.20 and the 52week low is at 38.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.38 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -54.04% over past five years.
– has a low return on equity of 2.89% for last 3 years.
Competition
– The industry trades at a mean P/E of 43.2x. Adani Enterp. trades at the industry’s max P/E of 179.02x. HEXATRADEX trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. HEXATRADEX has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 8.1%. The max 1- month return was given by Redington India: a return of 18.27 %
Quarterly Results
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Company reported negative operating profit of Rs -3.0 cr for period ended Sep 2021. For same period last year, operating profit was -0.0.
The EPS for quarter ended Sep 2021 is Rs -2.44 compared to Rs 0.07 for previous quarter ended Jun 2021 and Rs 0.02 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.34 cr for period ended TTM vis-vis sales of Rs 0.39 cr for the period ended Mar 2021, a fall of 14.7%. The 3 year sales cagr stood at 78.3%.
Operating margins shrank to 1767.65% for period ended TTM vis-vis 2633.33% for period ended Mar 2021, contraction of 86568.0 bps.
Net Profit reported at Rs -6.89 cr for period ended TTM vis-vis sales of Rs 9.52 cr for the period ended Mar 2021, falling 0%.
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 220% on a 1 Year basis vis-vis a return of 89% over the last 3 Years. – The compounded sales growth on a TTM bassis is 0% vis-vis a compounded sales growth of -31% over the last 3 Years. – The compounded profit growth on a TTM basis is 80% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 20.97% vis-vis 20.98% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 15.86% vis-vis 15.85% for Sep 2021
Conclusion
– Stock is trading at 0.38 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -54.04% over past five years.
– has a low return on equity of 2.89% for last 3 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 143.17 and is trading at 148.0, thus bullish price action wise.
