Mehabe score: 7 G Factor: 6 Piotski Score: 8 The stock has a rating . 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 6 and Piotski score of 8.
Description
Established in 1968, Jainex Aamcol Ltd. is the manufacturer of Gear Cutting Tools viz. gear hobs and special cutting tools, inspection tools & precision accessories under the brand “Aamcol”. The company also supplies Medium and High Carbon Cold Rolled Steel Strips, Hardened & Tempered Steel Strips and all types of Wires.
The company is a part of Jainex Group. Site:JAINEX Main Symbol:JAINEX
Stock trades at 130.0, above its 50dma 117.9. It also trades above its 200dma 81.65. The stock remains bullish on techicals
The 52 week high is at 171.25 and the 52week low is at 39.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 4.35 times its book value
-The company has delivered a poor sales growth of 0.34% over past five years.
– has a low return on equity of 3.93% for last 3 years.
-Debtor days have increased from 93.95 to 114.98 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 24.4x. WABCO India trades at the industry’s max P/E of 113.34x. JAINEX trades at a P/E of 15.0x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 8.0. JAINEX has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is -7.3%. The max 1- month return was given by Exide Inds.: a return of 0.88 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 4.44 cr compared to Rs 3.84 cr for period ended Dec 2020, a rise of 15.6% .
vis-vis 0.74 for period ended Dec 2020 .
Operating Margins contracted -125.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.8 cr for period ended Dec 2021 and operating profit margin at 18.0 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.21 compared to Rs 3.41 for previous quarter ended Sep 2021 and Rs 2.67 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.49 cr for period ended TTM vis-vis sales of Rs 12.0 cr for the period ended Mar 2021, a healthy growth of 31.4%. The 3 year sales cagr stood at -0.1%.
Operating margins expanded to 19.84% for period ended TTM vis-vis 13.67% for period ended Mar 2021, expansion of 617.0 bps.
Net Profit reported at Rs 1.23 cr for period ended TTM vis-vis sales of Rs 0.12 cr for the period ended Mar 2021, rising 90.2%.
Company recorded a healthy Net Profit CAGR of 26.3% 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 0.56 cr for period ended Mar 2021 vis-vis Rs -0.22 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 3.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 205% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 75% vis-vis a compounded sales growth of -8% over the last 3 Years. – The compounded profit growth on a TTM basis is 260% vis-vis a compounded profit growth of 82% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 16.22% vis-vis 16.01% for Sep 2021
Conclusion
– is expected to give good quarter – Stock is trading at 4.35 times its book value
-The company has delivered a poor sales growth of 0.34% over past five years.
– has a low return on equity of 3.93% for last 3 years.
-Debtor days have increased from 93.95 to 114.98 days.
-‘s cost of borrowing seems high
