Mehabe score: 5 G Factor: 4 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 4 and Piotski score of 8.
Description
Kalyani Forge is an engineering company with 40 years of domestic forging and machine industry with healthy relationship with established OEMs in the market with expertise in making forged, machined and assembled products for a variety of customers. Operating from Pune in India, ideally located near raw material sources as well as the seaport of Mumbai. Site:KALYANIFRG Main Symbol:KALYANIFRG
Stock trades at 206.0, above its 50dma 189.89. It also trades above its 200dma 190.31. The stock remains bullish on techicals
The 52 week high is at 239.90 and the 52week low is at 136.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.74 times its book value
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -4.78% over past five years.
– has a low return on equity of -0.41% for last 3 years.
-Debtor days have increased from 111.34 to 135.32 days.
Competition
– The industry trades at a mean P/E of 22.0x. Sona BLW Precis. trades at the industry’s max P/E of 283.33x. KALYANIFRG trades at a P/E of 19.1x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 8.0. KALYANIFRG has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 1.6%. The max 1- month return was given by Jayaswal Neco: a return of 20.67 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 61.15 cr compared to Rs 56.09 cr for period ended Dec 2020, a rise of 9.0% .
vis-vis 5.4 for period ended Dec 2020 .
Operating Margins contracted -195.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 4.69 cr for period ended Dec 2021 and operating profit margin at 7.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.32 compared to Rs 3.0 for previous quarter ended Sep 2021 and Rs 7.06 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 247.0 cr for period ended TTM vis-vis sales of Rs 181.0 cr for the period ended Mar 2021, a healthy growth of 26.7%. The 3 year sales cagr stood at -4.8%.
Operating margins expanded to 8.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs -2.0 cr for the period ended Mar 2021, rising 200.0%.
Company reported a poor Net Profit CAGR of -34.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 40% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 75% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 135% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 41.39% vis-vis 41.39% for Sep 2021
Conclusion
– Stock is trading at 0.74 times its book value
– is expected to give good quarter – The company has delivered a poor sales growth of -4.78% over past five years.
– has a low return on equity of -0.41% for last 3 years.
-Debtor days have increased from 111.34 to 135.32 days.
