Mehabe score: 4 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
KP Energy Limited is a balance of plant (BoP) solution provider for the Wind Energy industry. The company engages throughout the development process of wind farms, right from conceptualization until the commissioning of the project. The company undertakes projects principally in Gujarat. [1] Site:KPEL Main Symbol:KPEL
Stock trades at 322.0, above its 50dma 203.62. It also trades above its 200dma 129.77. The stock remains bullish on techicals
The 52 week high is at 323.80 and the 52week low is at 51.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 46.08 to 21.33 days.
Weakness
– The company has delivered a poor sales growth of 11.60% over past five years.
Competition
– The industry trades at a mean P/E of 38.5x. Adani Green trades at the industry’s max P/E of 711.97x. KPEL trades at a P/E of 34.8x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. KPEL has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 18.8%. The max 1- month return was given by K.P. Energy: a return of 72.22 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 71.14 cr compared to Rs 14.36 cr for period ended Dec 2020, a rise of 395.4% .
vis-vis 4.5 for period ended Dec 2020 .
Operating Margins contracted -1279.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 13.19 cr for period ended Dec 2021 and operating profit margin at 18.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 6.23 compared to Rs 4.05 for previous quarter ended Sep 2021 and Rs 1.9 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 178.0 cr for period ended TTM vis-vis sales of Rs 72.0 cr for the period ended Mar 2021, a healthy growth of 59.6%. The 3 year sales cagr stood at 4.1%.
Operating margins shrank to 19.0% for period ended TTM vis-vis 25.0% for period ended Mar 2021, contraction of 600.0 bps.
Net Profit reported at Rs 15.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 60.0%.
Company reported a poor Net Profit CAGR of -7.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -11.0 cr for period ended Mar 2021 vis-vis Rs -28.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 368% 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 266% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 325% vis-vis a compounded profit growth of 48% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 33.4% vis-vis 33.57% for Sep 2021
Conclusion
– is expected to give good quarter
-Debtor days have improved from 46.08 to 21.33 days. – The company has delivered a poor sales growth of 11.60% over past five years.
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 203.62 and is trading at 322.0, thus bullish price action wise.
