Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 6.
Description
Indo Tech Transformers is engaged in the business of manufacturing power and distribution transformers and various special application transformers, mobile sub-station transformers and sub-stations.(Source : 201903 Annual Report Page No: 55)Site:INDOTECH
Market Cap:
Rs 160 cr
Price:
151.0
Trading pe:
x
Book-value:
112/share
Div yield:
0.00 %
Earning yield:
-6.00%
Face-value:
10.0/share
52week high:
172.10
52week low:
78.10
Technical Analysis
Stock trades at 151.0, above its 50dma 121.43. It also trades above its 200dma 105.1. The stock remains bullish on techicals
The 52 week high is at 172.10 and the 52week low is at 78.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.53% over past five years.
– has a low return on equity of -2.62% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.7x. A B B trades at the industry’s max P/E of 153.95x. INDOTECH trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. INDOTECH has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by Indo Tech.Trans.: a return of 28.9 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 97.0 cr compared to Rs 37.0 cr for period ended Mar 2020, a rise of 162.2%
Company reported operating profit of Rs 13.0 cr for period ended Mar 2021, operating profit margin at 13.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 12.86 compared to Rs 0.9 for previous quarter ended Dec 2020 and Rs -0.97 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 206.0 cr for period ended Mar 2021 vis-vis sales of Rs 205.0 cr for the period ended Mar 2020, a growth of 0.5%. The 3 year sales cagr stood at -2.2%.
Operating margins expanded to 4.0% for period ended Mar 2021 vis-vis 1.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, rising 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 -14.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to -3.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -38% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -375% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 21.37% vis-vis 21.37% for Dec 2020
Conclusion
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.53% over past five years.
– has a low return on equity of -2.62% 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 121.43 and is trading at 151.0, thus bullish price action wise.
