Mehabe score: 2 G Factor: 5 Piotski Score: 4 The stock has a rating SELL. 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 4.
Description
Maan Aluminium is engaged in the business of manufacturing & trading of aluminium profiles, aluminium ingots, aluminium billets etc. and other related activities.Site:MAANALUMain Symbol:MAANALU
Stock trades at 135.0, below its 50dma 145.43. However it is trading above its 200dma 116.9. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 145.43.
The 52 week high is at 234.05 and the 52week low is at 29.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 89.86% CAGR over last 5 years
Weakness
– might be capitalizing the interest cost
-Debtor days have increased from 43.11 to 56.57 days.
Competition
– The industry trades at a mean P/E of 13.3x. Arfin India trades at the industry’s max P/E of 17.94x. MAANALU trades at a P/E of 9.9x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 9.0. MAANALU has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is -4.8%. The max 1- month return was given by MMP Industries: a return of 4.51 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 158.15 cr compared to Rs 93.15 cr for period ended Sep 2020, a rise of 69.8%
Operating Profits reported at Rs 7.4 cr for period ended Sep 2021 vis-vis 5.58 for period ended Sep 2020 .
Operating Margins contracted -131.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 3.47 compared to Rs 3.85 for previous quarter ended Jun 2021 and Rs 2.49 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 539.0 cr for period ended TTM vis-vis sales of Rs 403.0 cr for the period ended Mar 2021, a healthy growth of 25.2%. The 3 year sales cagr stood at -6.1%.
Net Profit reported at Rs 20.0 cr for period ended TTM vis-vis sales of Rs 15.0 cr for the period ended Mar 2021, rising 25.0%.
Company recorded a healthy Net Profit CAGR of 30.5% 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 26.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 272% on a 1 Year basis vis-vis a return of 32% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 167% vis-vis a compounded profit growth of 32% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.15% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 34.53% vis-vis 34.68% for Jun 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 89.86% CAGR over last 5 years – might be capitalizing the interest cost
-Debtor days have increased from 43.11 to 56.57 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 145.43 and is trading at 135.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
