Mehabe score: 5 G Factor: 6 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 6 and Piotski score of 7.
Description
Monnet Ispat & Energy is engaged in the business of Steel.Site:JSWISPLMain Symbol:JSWISPL
Stock trades at 40.5, below its 50dma 44.39. However it is trading above its 200dma 35.08. 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 44.39.
The 52 week high is at 67.60 and the 52week low is at 12.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -21.19%
-Promoters have pledged 34.07% of their holding.
-Earnings include an other income of Rs.330.26 Cr.
Competition
– The industry trades at a mean P/E of 10.0x. Lloyds Metals trades at the industry’s max P/E of 11093.15x. JSWISPL trades at a P/E of 9.03x
– Industry’s mean G-Factor is 5.4 while the mean Piotski score is 8.0. JSWISPL has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 6.0%. The max 1- month return was given by Jai Balaji Inds.: a return of 18.68 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1462.0 cr compared to Rs 595.0 cr for period ended Jun 2020, a rise of 145.7%
Company reported operating profit of Rs 179.0 cr for period ended Jun 2021, operating profit margin at 12.2 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 1.35 compared to Rs 1.99 for previous quarter ended Mar 2021 and Rs -3.28 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5055.0 cr for period ended TTM vis-vis sales of Rs 4188.0 cr for the period ended Mar 2021, a healthy growth of 17.2%. The 3 year sales cagr stood at 39.1%.
Operating margins expanded to 12.0% for period ended TTM vis-vis 9.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 428.0 cr for period ended TTM vis-vis sales of Rs 211.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 406.0 cr for period ended Mar 2021 vis-vis Rs -197.0 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 16.0% compared to 0% over the last 3 Years. – The stock has given a return of 179% on a 1 Year basis vis-vis a return of 53% over the last 3 Years. – The compounded sales growth on a TTM bassis is 59% vis-vis a compounded sales growth of 45% over the last 3 Years. – The compounded profit growth on a TTM basis is 143% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Jun 2021. The Jun 2021 fii holding stood at 2.52% vis-vis 0.0% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 35.47% vis-vis 12.25% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -21.19%
-Promoters have pledged 34.07% of their holding.
-Earnings include an other income of Rs.330.26 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 below its 50 DMA 44.39 and is trading at 40.5. Shows a near term lack of buying interest.
