Mehabe score: 5 G Factor: 0 Piotski Score: 1 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 0 and Piotski score of 1.
Description
Hindustan Motors is primarily engaged in manufacture and sale of Vehicles, Spare Parts of Vehicles, Steel Products and Components. The Company is also engaged in Trading of Spare Parts of Vehicles.Site:HINDMOTORS
Market Cap:
Rs 196 cr
Price:
9.35
Trading pe:
109.0x
Book-value:
-1.42/share
Div yield:
0.00 %
Earning yield:
1.45%
Face-value:
5.00/share
52week high:
10.00
52week low:
4.60
Technical Analysis
Stock trades at 9.35, above its 50dma 7.94. It also trades above its 200dma 6.95. The stock remains bullish on techicals
The 52 week high is at 10.00 and the 52week low is at 4.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– The company has delivered a poor sales growth of -57.47% over past five years.
-Promoter holding is low: 32.34%
-Contingent liabilities of Rs.82.63 Cr.
-Earnings include an other income of Rs.7.40 Cr.
-Debtor days have increased from 49.98 to 121.67 days.
Competition
– The industry trades at a mean P/E of 71.4x. Hindustan Motors trades at the industry’s max P/E of 109.23x. HINDMOTORS trades at a P/E of 109.0x
– Industry’s mean G-Factor is 2.0 while the mean Piotski score is 7.0. HINDMOTORS has a G-Factor of 0 and Piotski scoreof 1.
– Average 1 month return for industry is 5.2%. The max 1- month return was given by Hindustan Motors: a return of 13.33 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.21 cr compared to Rs 0.16 cr for period ended Mar 2020, a rise of 31.2%
Company reported negative operating profit of Rs -1.18 cr for period ended Mar 2021. For same period last year, operating profit was -1.21
The EPS for Mar 2021 was Rs 0.08 compared to Rs 0.03 for previous quarter ended Dec 2020 and Rs -0.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.17 cr for period ended Mar 2021 vis-vis sales of Rs 0.21 cr for the period ended Mar 2020, a healthy growth of 82.1%.
Operating margins expanded to -330.77% for period ended Mar 2021 vis-vis -2757.14% for period ended Mar 2020, expansion of 242637.0 bps.
Net Profit reported at Rs 3.76 cr for period ended Mar 2021 vis-vis sales of Rs -0.83 cr for the period ended Mar 2020, rising 122.1%.
Company reported a poor Net Profit CAGR of -59.5% 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 2021 vis-vis Rs -1.44 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 35% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -61% vis-vis a compounded sales growth of -43% over the last 3 Years. – The compounded profit growth on a TTM basis is -92% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.02% vis-vis 0.02% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 62.76% vis-vis 62.76% for Dec 2020
Conclusion
– has reduced debt. – The company has delivered a poor sales growth of -57.47% over past five years.
-Promoter holding is low: 32.34%
-Contingent liabilities of Rs.82.63 Cr.
-Earnings include an other income of Rs.7.40 Cr.
-Debtor days have increased from 49.98 to 121.67 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 7.94 and is trading at 9.35 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
