Mehabe score: 3 G Factor: 1 Piotski Score: 3 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 1 and Piotski score of 3.
Description
Maharashtra Scooters is engaged in the business manufacturing dies, Jigs, fixtures and die casting components primarily for automobiles industry etc.(Source : 202003 Annual Report Page No:69)Site:MAHSCOOTERMain Symbol:MAHSCOOTER
Stock trades at 3737.0, above its 50dma 3731.85. It also trades above its 200dma 3575.74. The stock remains bullish on techicals
The 52 week high is at 4399.95 and the 52week low is at 2737.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.26 times its book value
-Market value of investments Rs.17169.84 Cr. is more than the Market Cap Rs.4271.05 Cr.
– has been maintaining a healthy dividend payout of 244.09%
Weakness
– Tax rate seems low
– has a low return on equity of 0.82% for last 3 years.
-Debtor days have increased from 34.81 to 81.98 days.
Competition
– The industry trades at a mean P/E of 26.3x. Mah. Scooters trades at the industry’s max P/E of 488.68x. MAHSCOOTER trades at a P/E of 489.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. MAHSCOOTER has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Bajaj Holdings: a return of 8.8 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2.7 cr compared to Rs 1.41 cr for period ended Jun 2020, a rise of 91.5%
Company reported negative operating profit of Rs -0.62 cr for period ended Jun 2021. For same period last year, operating profit was -1.82
The EPS for Jun 2021 was Rs 1.87 compared to Rs 2.46 for previous quarter ended Mar 2021 and Rs 1.27 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16.57 cr for period ended TTM vis-vis sales of Rs 30.41 cr for the period ended Mar 2021, a fall of 83.5%. The 3 year sales cagr stood at -44.1%.
Operating margins shrank to -19.67% for period ended TTM vis-vis 35.09% for period ended Mar 2021, contraction of 5476.0 bps.
Net Profit reported at Rs 9.5 cr for period ended TTM vis-vis sales of Rs 8.81 cr for the period ended Mar 2021, rising 7.3%.
Company reported a poor Net Profit CAGR of -49.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -5.68 cr for period ended Mar 2021 vis-vis Rs -7.01 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 18% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -86% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is -95% vis-vis a compounded profit growth of -47% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.41% vis-vis 4.52% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.5% vis-vis 41.42% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.26 times its book value
-Market value of investments Rs.17169.84 Cr. is more than the Market Cap Rs.4271.05 Cr.
– has been maintaining a healthy dividend payout of 244.09% – Tax rate seems low
– has a low return on equity of 0.82% for last 3 years.
-Debtor days have increased from 34.81 to 81.98 days.
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 3731.85 and is trading at 3737.0 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
