Mehabe score: 7 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
Likhitha Infrastructure Limited is engaged in the business of Pipeline Laying by providing comprehensive erection, testing and commissioning of Oil & Gas pipelines, City Gas Distribution (CGD) Projects and Operation and Maintenance (O&M) Services. [1] Site:LIKHITHA Main Symbol:LIKHITHA
Stock trades at 378.0, above its 50dma 349.16. It also trades above its 200dma 344.87. The stock remains bullish on techicals
The 52 week high is at 480.00 and the 52week low is at 208.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 62.74% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 31.48%
Weakness
– Debtor days have increased from 51.28 to 74.37 days.
Competition
– The industry trades at a mean P/E of 34.9x. IRB Infra.Devl. trades at the industry’s max P/E of 61.77x. LIKHITHA trades at a P/E of 17.3x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. LIKHITHA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 5.6%. The max 1- month return was given by IRB Infra.Devl.: a return of 26.52 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 65.0 cr compared to Rs 58.0 cr for period ended Dec 2020, a rise of 12.1% .
vis-vis 12.0 for period ended Dec 2020 .
Operating Margins expanded 238.7 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 15.0 cr for period ended Dec 2021 and operating profit margin at 23.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs 5.71 compared to Rs 5.26 for previous quarter ended Sep 2021 and Rs 4.82 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 253.0 cr for period ended TTM vis-vis sales of Rs 191.0 cr for the period ended Mar 2021, a healthy growth of 24.5%. The 3 year sales cagr stood at 22.1%.
Operating margins expanded to 24.0% for period ended TTM vis-vis 21.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 45.0 cr for period ended TTM vis-vis sales of Rs 29.0 cr for the period ended Mar 2021, rising 35.6%.
Company recorded a healthy Net Profit CAGR of 35.7% 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 26.0% compared to 31.0% over the last 3 Years. – The stock has given a return of 67% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 67% vis-vis a compounded sales growth of 30% over the last 3 Years. – The compounded profit growth on a TTM basis is 152% vis-vis a compounded profit growth of 59% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.13% vis-vis 0.09% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.76% vis-vis 25.8% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 62.74% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 31.48% – Debtor days have increased from 51.28 to 74.37 days.
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 349.16 and is trading at 378.0, thus bullish price action wise.
