Mehabe score: 3 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6. Site:MARINE
Market Cap:
Rs 954 cr
Price:
77.8
Trading pe:
73.9x
Book-value:
12.7/share
Div yield:
0.00 %
Earning yield:
2.61%
Face-value:
2.00/share
52week high:
90.70
52week low:
16.00
Technical Analysis
Stock trades at 77.8, above its 50dma 72.68. It also trades above its 200dma 52.61. The stock remains bullish on techicals
The 52 week high is at 90.70 and the 52week low is at 16.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 6.11 times its book value
-The company has delivered a poor sales growth of 0.12% over past five years.
– has a low return on equity of 7.17% for last 3 years.
-Dividend payout has been low at 1.27% of profits over last 3 years
– has high debtors of 247.91 days.
Competition
– The industry trades at a mean P/E of 24.8x. A B B trades at the industry’s max P/E of 149.21x. MARINE trades at a P/E of 73.9x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. MARINE has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 12.4%. The max 1- month return was given by B H E L: a return of 33.22 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 89.58 cr compared to Rs 63.95 cr for period ended Mar 2020, a rise of 40.1%
Operating Profits reported at Rs 12.38 cr for period ended Mar 2021 vis-vis 8.81 for period ended Mar 2020 .
Operating Margins expanded 4.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.55 compared to Rs 0.3 for previous quarter ended Dec 2020 and Rs 0.42 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 251.0 cr for period ended Mar 2021 vis-vis sales of Rs 289.0 cr for the period ended Mar 2020, a fall of 15.1%. The 3 year sales cagr stood at -12.1%.
Operating margins expanded to 11.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 13.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020, rising 30.8%.
Company reported a poor Net Profit CAGR of -6.7% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 305% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 41% vis-vis a compounded profit growth of -7% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 6.11 times its book value
-The company has delivered a poor sales growth of 0.12% over past five years.
– has a low return on equity of 7.17% for last 3 years.
-Dividend payout has been low at 1.27% of profits over last 3 years
– has high debtors of 247.91 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 72.68 and is trading at 77.8 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
