Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 3. Site:MAXINDIA Main Symbol:MAXINDIA
Stock trades at 75.8, above its 50dma 75.72. It also trades above its 200dma 72.81. The stock remains bullish on techicals
The 52 week high is at 84.55 and the 52week low is at 59.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.63 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Contingent liabilities of Rs.135.06 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 27.4x. Indian Energy Ex trades at the industry’s max P/E of 75.08x. MAXINDIA trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. MAXINDIA has a G-Factor of 5 and Piotski scoreof 3.
– Average 1 month return for industry is 0.3%. The max 1- month return was given by Gujarat Gas: a return of 9.87 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 82.83 cr compared to Rs 28.79 cr for period ended Sep 2020, a rise of 187.7% .
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Company reported operating profit of Rs 2.98 cr for period ended Sep 2021 and operating profit margin at 3.6 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Sep 2021 is Rs -0.1 compared to Rs -1.9 for previous quarter ended Jun 2021 and Rs -3.22 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 205.0 cr for period ended TTM vis-vis sales of Rs 121.0 cr for the period ended Mar 2021, a healthy growth of 41.0%.
Operating margins expanded to -5.0% for period ended TTM vis-vis -24.0% for period ended Mar 2021, expansion of 1900.0 bps.
Net Profit reported at Rs -33.0 cr for period ended TTM vis-vis sales of Rs -53.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 73.0 cr for period ended Mar 2021 vis-vis Rs -19.0 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 -7.0% compared to 0% over the last 3 Years. – The stock has given a return of 25% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 31% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is -108% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 6.21% vis-vis 6.04% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 49.83% vis-vis 50.0% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.63 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-Contingent liabilities of Rs.135.06 Cr.
-‘s cost of borrowing seems high
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 75.72 and is trading at 75.8 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
