Mehabe score: 3 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
Moksh Ornaments is engaged in the business of manufacture and wholesale of jewellery and head quartered at Mumbai, Maharashtra.(Source : 201903 Annual Report Page No: 32)Site:MOKSHMain Symbol:www.nseindia.com
Stock trades at 35.2, above its 50dma 33.33. It also trades above its 200dma 20.25. The stock remains bullish on techicals
The 52 week high is at 41.00 and the 52week low is at 4.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 4.70 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -9.70%
– might be capitalizing the interest cost
-Debtor days have increased from 30.99 to 45.46 days.
Competition
– The industry trades at a mean P/E of 26.4x. Titan Company trades at the industry’s max P/E of 166.64x. MOKSH trades at a P/E of 44.6x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. MOKSH has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 7.6%. The max 1- month return was given by Renaiss. Global: a return of 19.38 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 77.53 cr compared to Rs 1.04 cr for period ended Jun 2020, a rise of 7354.8%
Company reported operating profit of Rs 2.79 cr for period ended Sep 2021, operating profit margin at 3.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.39 compared to Rs 0.2 for previous quarter ended Jun 2021 and Rs 0.13 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 337.0 cr for period ended Mar 2021 vis-vis sales of Rs 344.0 cr for the period ended Mar 2020, a fall of 2.1%. The 3 year sales cagr stood at 2.8%.
Operating margins expanded to 3.0% for period ended Mar 2021 vis-vis 2.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020, falling 25.0%.
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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 738% on a 1 Year basis vis-vis a return of 97% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -23% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Conclusion
– has reduced debt. – Stock is trading at 4.70 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -9.70%
– might be capitalizing the interest cost
-Debtor days have increased from 30.99 to 45.46 days.
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 33.33 and is trading at 35.2, thus bullish price action wise.
