Mehabe score: 2 G Factor: 1 Piotski Score: 3 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 1 and Piotski score of 3.
Description
Maharashtra Scooters Ltd. (MSL) is a manufacturing & and an unregistered core investment company. It is engaged in the business of manufacturing dies, Jigs, fixtures and die casting components primarily for the automobiles industry, etc. [1] Site:MAHSCOOTER Main Symbol:MAHSCOOTER
Stock trades at 4011.0, below its 50dma 4077.08 and below its 200dma 4055.74. The stock remains bearish on technicals
The 52 week high is at 5050.00 and the 52week low is at 3275.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.19 times its book value
-Market value of investments Rs.17169.84 Cr. is more than the Market Cap Rs.4585.15 Cr.
– has been maintaining a healthy dividend payout of 244.09%
Weakness
– has a low return on equity of 0.82% for last 3 years.
-Earnings include an other income of Rs.175.20 Cr.
-Debtor days have increased from 34.81 to 81.98 days.
Competition
– The industry trades at a mean P/E of 28.5x. Bajaj Finance trades at the industry’s max P/E of 95.26x. MAHSCOOTER trades at a P/E of 32.0x
– Industry’s mean G-Factor is 3.2 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 7.3%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 17.7 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 5.59 cr compared to Rs 4.28 cr for period ended Dec 2020, a rise of 30.6% .
.
Company reported negative operating profit of Rs -0.19 cr for period ended Dec 2021. For same period last year, operating profit was -1.0.
The EPS for quarter ended Dec 2021 is Rs 2.89 compared to Rs 118.74 for previous quarter ended Sep 2021 and Rs 2.31 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.0 cr for period ended TTM vis-vis sales of Rs 30.0 cr for the period ended Mar 2021, a fall of 57.9%. The 3 year sales cagr stood at -41.5%.
Operating margins shrank to -9.0% for period ended TTM vis-vis 35.0% for period ended Mar 2021, contraction of 4400.0 bps.
Net Profit reported at Rs 144.0 cr for period ended TTM vis-vis sales of Rs 9.0 cr for the period ended Mar 2021, rising 93.8%.
Company recorded a healthy Net Profit CAGR of 25.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -6.0 cr for period ended Mar 2021 vis-vis Rs -7.0 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 10% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 20% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is 27% vis-vis a compounded profit growth of -47% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 4.3% vis-vis 4.41% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 41.62% vis-vis 41.5% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.19 times its book value
-Market value of investments Rs.17169.84 Cr. is more than the Market Cap Rs.4585.15 Cr.
– has been maintaining a healthy dividend payout of 244.09% – has a low return on equity of 0.82% for last 3 years.
-Earnings include an other income of Rs.175.20 Cr.
-Debtor days have increased from 34.81 to 81.98 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 4077.08 and is trading at 4011.0. 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
