Mehabe score: 3 G Factor: 4 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 4 and Piotski score of 3.
Description
Marsons is primarily a manufacturer of electrical Transformer. Site:MARSONS Main Symbol:MARSONS
Stock trades at 13.7, above its 50dma 11.79. It also trades above its 200dma 9.58. The stock remains bullish on techicals
The 52 week high is at 16.25 and the 52week low is at 6.85
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 285.42 times its book value
– has low interest coverage ratio.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 31.0x. A B B trades at the industry’s max P/E of 103.48x. MARSONS trades at a P/E of x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 9.0. MARSONS has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is -7.1%. The max 1- month return was given by Hitachi Energy: a return of 6.05 %
Quarterly Results
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Company reported negative operating profit of Rs -0.33 cr for period ended Dec 2021. For same period last year, operating profit was -0.17.
The EPS for quarter ended Dec 2021 is Rs -0.02 compared to Rs -0.03 for previous quarter ended Sep 2021 and Rs -0.04 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.02 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, a growth of 0%. The 3 year sales cagr stood at -61.5%.
Net Profit reported at Rs -1.53 cr for period ended TTM vis-vis sales of Rs -2.23 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.5 cr for period ended Mar 2021 vis-vis Rs -13.37 cr for period ended Mar 2020
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 -97.0% compared to 0% over the last 3 Years. – The stock has given a return of 98% on a 1 Year basis vis-vis a return of 141% over the last 3 Years. – The compounded sales growth on a TTM bassis is % vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 30% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 3.62% vis-vis 3.62% for Sep 2021
Conclusion
– – Stock is trading at 285.42 times its book value
– has low interest coverage ratio.
– might be capitalizing the interest cost
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 11.79 and is trading at 13.7 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
