Mehabe score: 6 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
Kernex Microsystems (India) is engaged in the manufacture and sale of Safety Systems and Software services for Railways.Site:KERNEX
Market Cap:
Rs 93.4 cr
Price:
74.7
Trading pe:
46.2x
Book-value:
/share
Div yield:
0.00 %
Earning yield:
-3.05%
Face-value:
10.0/share
52week high:
75.50
52week low:
15.65
Technical Analysis
Stock trades at 74.7, above its 50dma 53.39. It also trades above its 200dma 37.56. The stock remains bullish on techicals
The 52 week high is at 75.50 and the 52week low is at 15.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 9.70% over past five years.
-Promoter holding is low: 22.34%
-Promoter holding has decreased over last 3 years: -9.44%
Competition
– The industry trades at a mean P/E of 21.3x. Kernex Microsys. trades at the industry’s max P/E of 46.23x. KERNEX trades at a P/E of 46.2x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. KERNEX has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 13.4%. The max 1- month return was given by Kernex Microsys.: a return of 44.07 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 13.97 cr compared to Rs 0.65 cr for period ended Mar 2020, a rise of 2049.2%
Company reported operating profit of Rs 3.05 cr for period ended Mar 2021, operating profit margin at 21.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 2.43 compared to Rs 0.66 for previous quarter ended Dec 2020 and Rs -6.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.32 cr for period ended Mar 2021 vis-vis sales of Rs 14.88 cr for the period ended Mar 2020, a healthy growth of 18.8%. The 3 year sales cagr stood at 11.2%.
Operating margins expanded to 20.91% for period ended Mar 2021 vis-vis -49.33% for period ended Mar 2020, expansion of 7024.0 bps.
Net Profit reported at Rs 2.02 cr for period ended Mar 2021 vis-vis sales of Rs 3.43 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -11.25 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 338% on a 1 Year basis vis-vis a return of 37% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -41% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 77.66% vis-vis 77.66% for Dec 2020
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of 9.70% over past five years.
-Promoter holding is low: 22.34%
-Promoter holding has decreased over last 3 years: -9.44%
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 53.39 and is trading at 74.7, thus bullish price action wise.
