Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 6.
Description
JTL Infra Ltd is an integrated manufacturer and supplier of steel tubes, pipes and allied products with manufacturing facilities in India.[1] Site:JTLINFRA Main Symbol:JTLINFRA
Stock trades at 267.0, above its 50dma 236.41. It also trades above its 200dma 198.84. The stock remains bullish on techicals
The 52 week high is at 280.00 and the 52week low is at 87.17
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 109.14% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 39.65%
-Debtor days have improved from 65.30 to 35.58 days.
-‘s median sales growth is 19.04% of last 10 years
Weakness
– Stock is trading at 19.02 times its book value
-Promoter holding has decreased over last quarter: -6.50%
Competition
– The industry trades at a mean P/E of 16.1x. Apollo Tricoat trades at the industry’s max P/E of 40.11x. JTLINFRA trades at a P/E of 31.6x
– Industry’s mean G-Factor is 5.8 while the mean Piotski score is 9.0. JTLINFRA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 17.0%. The max 1- month return was given by Welspun Corp: a return of 34.79 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 301.0 cr compared to Rs 204.0 cr for period ended Mar 2021, a rise of 47.5% .
vis-vis 16.0 for period ended Mar 2021 .
Operating Margins contracted -20.2 bps for period ended Mar 2022 vis-vis Mar 2021.
Company reported operating profit of Rs 23.0 cr for period ended Mar 2022 and operating profit margin at 7.6 % for same period.
The EPS for quarter ended Mar 2022 is Rs 2.7 compared to Rs 2.2 for previous quarter ended Dec 2021 and Rs 2.06 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 976.0 cr for period ended Mar 2022 vis-vis sales of Rs 435.0 cr for the period ended Mar 2021, a healthy growth of 55.4%. The 3 year sales cagr stood at 44.7%.
Operating margins shrank to 7.0% for period ended Mar 2022 vis-vis 8.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 50.0 cr for period ended Mar 2022 vis-vis sales of Rs 20.0 cr for the period ended Mar 2021, rising 60.0%.
Company recorded a healthy Net Profit CAGR of 52.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -5.0 cr for period ended Mar 2021
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 62.0% compared to 40.0% over the last 3 Years. – The stock has given a return of 160% on a 1 Year basis vis-vis a return of 107% over the last 3 Years. – The compounded sales growth on a TTM bassis is 124% vis-vis a compounded sales growth of 45% over the last 3 Years. – The compounded profit growth on a TTM basis is 149% vis-vis a compounded profit growth of 51% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Dec 2021. The Dec 2021 public holding stood at 43.98% vis-vis 37.48% for Sep 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 109.14% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 39.65%
-Debtor days have improved from 65.30 to 35.58 days.
-‘s median sales growth is 19.04% of last 10 years – Stock is trading at 19.02 times its book value
-Promoter holding has decreased over last quarter: -6.50%
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 236.41 and is trading at 267.0, thus bullish price action wise.
