Mehabe score: 8 G Factor: 6 Piotski Score: 6 The stock has a rating 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 6 and Piotski score of 6.
Description
Modison Metals Ltd is a leading manufacturer of Electrical contacts in all the three segments, LV, MV & HV.Site:MODISNMEMain Symbol:MODISNME
Stock trades at 91.2, above its 50dma 68.08. It also trades above its 200dma 52.68. The stock remains bullish on techicals
The 52 week high is at 96.00 and the 52week low is at 32.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 18.15% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 11.67% over past five years.
Competition
– The industry trades at a mean P/E of 29.2x. A B B trades at the industry’s max P/E of 151.67x. MODISNME trades at a P/E of 11.8x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. MODISNME has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 1.5%. The max 1- month return was given by Modison Metals: a return of 30.92 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 105.31 cr compared to Rs 57.26 cr for period ended Mar 2020, a rise of 83.9%
Operating Profits reported at Rs 11.16 cr for period ended Mar 2021 vis-vis 8.4 for period ended Mar 2020 .
Operating Margins contracted -407.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.98 compared to Rs 1.09 for previous quarter ended Dec 2020 and Rs 1.92 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 292.0 cr for period ended Mar 2021 vis-vis sales of Rs 219.0 cr for the period ended Mar 2020, a healthy growth of 25.0%. The 3 year sales cagr stood at 15.2%.
Operating margins expanded to 14.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 22.0 cr for period ended Mar 2021 vis-vis sales of Rs 15.0 cr for the period ended Mar 2020, rising 31.8%.
Company recorded a healthy Net Profit CAGR of 16.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 24.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 0% over the last 3 Years. – The stock has given a return of 172% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 33% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 46% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.09% vis-vis 0.09% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 47.14% vis-vis 47.14% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 18.15% CAGR over last 5 years – The company has delivered a poor sales growth of 11.67% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 68.08 and is trading at 91.2, thus bullish price action wise.
