Mehabe score: 4 G Factor: 4 Piotski Score: 3 The stock has a rating OBSERVE & 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 3.
Description
Business Overview
Company is in real estate business (Residential & Commercial) with dominant presence in the Pune and growing presence in Mumbai and Bengaluru.Site:KOLTEPATILMain Symbol:KOLTEPATIL
Stock trades at 309.0, above its 50dma 280.91. It also trades above its 200dma 242.34. The stock remains bullish on techicals
The 52 week high is at 360.00 and the 52week low is at 157.10
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 2.63 times its book value
-The company has delivered a poor sales growth of -1.70% over past five years.
– has a low return on equity of 5.30% for last 3 years.
Competition
– The industry trades at a mean P/E of 28.7x. Phoenix Mills trades at the industry’s max P/E of 240.66x. KOLTEPATIL trades at a P/E of 46.2x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. KOLTEPATIL has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Brigade Enterpr.: a return of 17.92 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 197.0 cr compared to Rs 141.0 cr for period ended Jun 2020, a rise of 39.7%
Company reported operating profit of Rs 62.0 cr for period ended Jun 2021, operating profit margin at 31.5 %.
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 3.88 compared to Rs 2.74 for previous quarter ended Mar 2021 and Rs -3.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 748.0 cr for period ended TTM vis-vis sales of Rs 692.0 cr for the period ended Mar 2021, a growth of 7.5%. The 3 year sales cagr stood at -4.8%.
Operating margins expanded to 18.0% for period ended TTM vis-vis 9.0% for period ended Mar 2021, expansion of 900.0 bps.
Net Profit reported at Rs 51.0 cr for period ended TTM vis-vis sales of Rs -6.0 cr for the period ended Mar 2021, rising 111.8%.
Company reported a poor Net Profit CAGR of -12.1% 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -1.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 83% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is 172% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Sep 2021. The Sep 2021 fii holding stood at 1.58% vis-vis 5.26% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 21.4% vis-vis 20.24% for Jun 2021
Conclusion
– – Stock is trading at 2.63 times its book value
-The company has delivered a poor sales growth of -1.70% over past five years.
– has a low return on equity of 5.30% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 280.91 and is trading at 309.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
