Mehabe score: 6 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
Incorporated in 2010, Lagnam Spintex Ltd is engaged in the business of manufacturing Ring & Open end Cotton yarns for domestic and international market. It exports to countries like Portugal, China, Bangladesh, etc and their yarns are used in apparel & garment industry [1] [2] Site:LAGNAM Main Symbol:LAGNAM
Stock trades at 94.0, above its 50dma 86.47. It also trades above its 200dma 64.13. The stock remains bullish on techicals
The 52 week high is at 111.80 and the 52week low is at 15.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 50.99% CAGR over last 5 years
-Debtor days have improved from 53.27 to 42.22 days.
Weakness
– might be capitalizing the interest cost
-Promoters have pledged 48.98% of their holding.
Competition
– The industry trades at a mean P/E of 30.7x. Jindal Worldwide trades at the industry’s max P/E of 72.98x. LAGNAM trades at a P/E of 5.76x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 9.0. LAGNAM has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 14.5%. The max 1- month return was given by Swan Energy: a return of 55.49 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 101.44 cr compared to Rs 72.93 cr for period ended Mar 2021, a rise of 39.1% .
vis-vis 14.26 for period ended Mar 2021 .
Operating Margins contracted -487.4 bps for period ended Mar 2022 vis-vis Mar 2021.
Company reported operating profit of Rs 14.89 cr for period ended Mar 2022 and operating profit margin at 14.7 % for same period.
The EPS for quarter ended Mar 2022 is Rs 4.02 compared to Rs 5.32 for previous quarter ended Dec 2021 and Rs 3.5 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 348.0 cr for period ended Mar 2022 vis-vis sales of Rs 205.0 cr for the period ended Mar 2021, a healthy growth of 41.1%. The 3 year sales cagr stood at 63.2%.
Operating margins expanded to 17.0% for period ended Mar 2022 vis-vis 13.0% for period ended Mar 2021, expansion of 400.0 bps.
Net Profit reported at Rs 29.0 cr for period ended Mar 2022 vis-vis sales of Rs 5.0 cr for the period ended Mar 2021, rising 82.8%.
Company recorded a healthy Net Profit CAGR of 79.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 40.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 497% on a 1 Year basis vis-vis a return of 84% over the last 3 Years. – The compounded sales growth on a TTM bassis is 70% vis-vis a compounded sales growth of 63% over the last 3 Years. – The compounded profit growth on a TTM basis is 533% vis-vis a compounded profit growth of 82% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 50.99% CAGR over last 5 years
-Debtor days have improved from 53.27 to 42.22 days. – might be capitalizing the interest cost
-Promoters have pledged 48.98% of their holding.
