Mehabe score: 5 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
JMC Projects (India) is primarily engaged in Engineering, Procurrement and Construction (EPC) business.Site:JMCPROJECTMain Symbol:JMCPROJECT
Stock trades at 125.0, above its 50dma 114.28. It also trades above its 200dma 89.67. The stock remains bullish on techicals
The 52 week high is at 130.00 and the 52week low is at 43.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 319.38%
Weakness
– Stock is trading at 4.29 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.61% over past five years.
– has a low return on equity of 3.21% for last 3 years.
-Contingent liabilities of Rs.915.33 Cr.
Competition
– The industry trades at a mean P/E of 35.9x. Macrotech Devel. trades at the industry’s max P/E of 19.04x. JMCPROJECT trades at a P/E of x
– Industry’s mean G-Factor is 5.6 while the mean Piotski score is 7.0. JMCPROJECT has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 15.5%. The max 1- month return was given by Mahindra Life.: a return of 37.06 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1161.0 cr compared to Rs 498.0 cr for period ended Jun 2020, a rise of 133.1%
Operating Profits reported at Rs 97.0 cr for period ended Jun 2021 vis-vis 36.0 for period ended Jun 2020 .
Operating Margins expanded 112.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -0.6 compared to Rs 2.47 for previous quarter ended Mar 2021 and Rs -3.11 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4507.0 cr for period ended TTM vis-vis sales of Rs 3844.0 cr for the period ended Mar 2021, a healthy growth of 14.7%. The 3 year sales cagr stood at 9.8%.
Operating margins shrank to 10.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 16.0 cr for period ended TTM vis-vis sales of Rs -26.0 cr for the period ended Mar 2021, rising 262.5%.
Company reported a poor Net Profit CAGR of -40.8% 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 640.0 cr for period ended Mar 2021 vis-vis Rs 479.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -5.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 179% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -3863% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.53% vis-vis 0.24% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 15.34% vis-vis 15.54% for Mar 2021
Conclusion
– has been maintaining a healthy dividend payout of 319.38% – Stock is trading at 4.29 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.61% over past five years.
– has a low return on equity of 3.21% for last 3 years.
-Contingent liabilities of Rs.915.33 Cr.
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 114.28 and is trading at 125.0, thus bullish price action wise.
