Mehabe score: 5 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
LGB Forge Limited was incorporated in 2008 and it is involved in manufacturing of forged (range of hot, cold and warm forgings) and machined components. It is a part of the LGB group, which includes L.G. Balakrishnan & Bros Limited. [1] Site:LGBFORGE Main Symbol:LGBFORGE
Stock trades at 14.3, above its 50dma 12.13. It also trades above its 200dma 9.99. The stock remains bullish on techicals
The 52 week high is at 23.90 and the 52week low is at 3.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 9.00 times its book value
-The company has delivered a poor sales growth of 0.85% over past five years.
– has a low return on equity of 5.60% for last 3 years.
-Debtor days have increased from 94.30 to 134.70 days.
Competition
– The industry trades at a mean P/E of 19.2x. PTC Industries trades at the industry’s max P/E of 306.0x. LGBFORGE trades at a P/E of 76.5x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 8.0. LGBFORGE has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 18.6%. The max 1- month return was given by PTC Industries: a return of 43.84 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 34.66 cr compared to Rs 31.25 cr for period ended Dec 2020, a rise of 10.9% .
vis-vis 4.01 for period ended Dec 2020 .
Operating Margins contracted -544.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 2.56 cr for period ended Dec 2021 and operating profit margin at 7.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.04 compared to Rs 0.07 for previous quarter ended Sep 2021 and Rs 0.1 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 127.0 cr for period ended TTM vis-vis sales of Rs 92.0 cr for the period ended Mar 2021, a healthy growth of 27.6%. The 3 year sales cagr stood at -1.3%.
Operating margins shrank to 8.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, rising 25.0%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 269% on a 1 Year basis vis-vis a return of 59% over the last 3 Years. – The compounded sales growth on a TTM bassis is 55% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 371% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 26.17% vis-vis 26.17% for Sep 2021
Conclusion
– is expected to give good quarter – Stock is trading at 9.00 times its book value
-The company has delivered a poor sales growth of 0.85% over past five years.
– has a low return on equity of 5.60% for last 3 years.
-Debtor days have increased from 94.30 to 134.70 days.
