Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 7.
Description
Hisar Metal Industries is a manufacturer of Cold Rolling Strips and Pipe.Site:HISARMETALMain Symbol:HISARMET
Stock trades at 124.0, below its 50dma 130.7. However it is trading above its 200dma 117.15. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 130.7.
The 52 week high is at 165.00 and the 52week low is at 66.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -2.78% over past five years.
– might be capitalizing the interest cost
-Debtor days have increased from 75.91 to 98.03 days.
Competition
– The industry trades at a mean P/E of 13.1x. Ratnamani Metals trades at the industry’s max P/E of 34.7x. HISARMETAL trades at a P/E of 7.05x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 9.0. HISARMETAL has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -0.8%. The max 1- month return was given by Mah. Seamless: a return of 10.37 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 55.25 cr compared to Rs 38.54 cr for period ended Sep 2020, a rise of 43.4%
Operating Profits reported at Rs 4.24 cr for period ended Sep 2021 vis-vis 3.13 for period ended Sep 2020 .
Operating Margins contracted -44.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 5.2 compared to Rs 3.19 for previous quarter ended Jun 2021 and Rs 2.22 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 201.0 cr for period ended TTM vis-vis sales of Rs 153.0 cr for the period ended Mar 2021, a healthy growth of 23.9%. The 3 year sales cagr stood at -1.1%.
Operating margins shrank to 9.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 9.0 cr for period ended TTM vis-vis sales of Rs 5.0 cr for the period ended Mar 2021, rising 44.4%.
Company recorded a healthy Net Profit CAGR of 21.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 8.0 cr for period ended Mar 2021 vis-vis Rs 4.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 61% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 52% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is 471% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.01% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 43.5% vis-vis 43.51% for Jun 2021
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of -2.78% over past five years.
– might be capitalizing the interest cost
-Debtor days have increased from 75.91 to 98.03 days.
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 below its 50 DMA 130.7 and is trading at 124.0. Shows a near term lack of buying interest.
