Mehabe score: 6 G Factor: 2 Piotski Score: 4 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 2 and Piotski score of 4.
Description
Lesha Industries is engaged in the Business of Trading of Steel. Site:LESHAIND Main Symbol:LESHAIND
Stock trades at 13.1, above its 50dma 8.35. It also trades above its 200dma 6.26. The stock remains bullish on techicals
The 52 week high is at 14.30 and the 52week low is at 1.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 10.26 times its book value
– has a low return on equity of 1.07% for last 3 years.
Competition
– The industry trades at a mean P/E of 37.4x. Lesha Industries trades at the industry’s max P/E of 360.52x. LESHAIND trades at a P/E of 361.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. LESHAIND has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 27.6%. The max 1- month return was given by Lesha Industries: a return of 119.23 %
Quarterly Results
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Company reported operating profit of Rs 0.36 cr for period ended Mar 2022 and operating profit margin at 9.8 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Mar 2022 is Rs 0.03 compared to Rs 0.0 for previous quarter ended Dec 2021 and Rs -0.01 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7.25 cr for period ended Mar 2022 vis-vis sales of Rs 2.64 cr for the period ended Mar 2021, a healthy growth of 63.6%. The 3 year sales cagr stood at 94.9%.
Operating margins expanded to 6.76% for period ended Mar 2022 vis-vis 0.38% for period ended Mar 2021, expansion of 638.0 bps.
Net Profit reported at Rs 0.4 cr for period ended Mar 2022 vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -1.07 cr for period ended Mar 2021
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 1137% on a 1 Year basis vis-vis a return of 88% over the last 3 Years. – The compounded sales growth on a TTM bassis is 175% vis-vis a compounded sales growth of 95% over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 98% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 56.36% vis-vis 56.23% for Sep 2021
Conclusion
– is almost debt free. – Stock is trading at 10.26 times its book value
– has a low return on equity of 1.07% 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 8.35 and is trading at 13.1 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
