Mehabe score: 3 G Factor: 1 Piotski Score: 4 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 1 and Piotski score of 4.
Description
HMT Limited is a machine tool manufacturing company. The Company offers tractors and food processing machinery.Site:HMTMain Symbol:HMT
Stock trades at 37.8, above its 50dma 30.8. It also trades above its 200dma 25.4. The stock remains bullish on techicals
The 52 week high is at 39.50 and the 52week low is at 13.72
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.25% over past five years.
– has high debtors of 301.70 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 24.4x. MTAR Technologie trades at the industry’s max P/E of 91.02x. HMT trades at a P/E of x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 8.0. HMT has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 17.6%. The max 1- month return was given by MTAR Technologie: a return of 32.6 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 85.75 cr compared to Rs 71.56 cr for period ended Mar 2020, a rise of 19.8%
Operating Profits reported at Rs 1.0 cr for period ended Mar 2021 vis-vis 8.36 for period ended Mar 2020 .
Operating Margins contracted -1051.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.05 compared to Rs -0.76 for previous quarter ended Dec 2020 and Rs 6.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 204.0 cr for period ended Mar 2021 vis-vis sales of Rs 260.0 cr for the period ended Mar 2020, a fall of 27.5%. The 3 year sales cagr stood at 1.5%.
Operating margins shrank to -34.0% for period ended Mar 2021 vis-vis -15.0% for period ended Mar 2020, contraction of 1900.0 bps.
Net Profit reported at Rs -110.0 cr for period ended Mar 2021 vis-vis sales of Rs 156.0 cr for the period ended Mar 2020, falling 0%.
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 -265.0 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 108% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -170% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 6.31% vis-vis 6.31% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.25% over past five years.
– has high debtors of 301.70 days.
-‘s cost of borrowing seems high
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 30.8 and is trading at 37.8 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
