Mehabe score: 0 G Factor: 2 Piotski Score: 5 The stock has a rating SELL. 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 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:MOKSH Main Symbol:MOKSH
Stock trades at 24.4, below its 50dma 36.92 and below its 200dma 31.19. The stock remains bearish on technicals
The 52 week high is at 61.15 and the 52week low is at 6.64
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 3.01 times its book value
-Debtor days have increased from 30.99 to 45.46 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -17.08%
Competition
– The industry trades at a mean P/E of 32.8x. Titan Company trades at the industry’s max P/E of 97.39x. MOKSH trades at a P/E of 30.8x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. MOKSH has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -14.8%. The max 1- month return was given by Rajesh Exports: a return of 3.19 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 100.85 cr compared to Rs 128.18 cr for period ended Dec 2020, a fall of 21.3%
.
vis-vis 2.14 for period ended Dec 2020 .
Operating Margins expanded 5.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1.74 cr for period ended Dec 2021 and operating profit margin at 1.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.21 compared to Rs 0.39 for previous quarter ended Sep 2021 and Rs 0.35 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 370.0 cr for period ended TTM vis-vis sales of Rs 337.0 cr for the period ended Mar 2021, a growth of 8.9%. The 3 year sales cagr stood at -1.0%.
Operating margins shrank to 2.0% for period ended TTM vis-vis 3.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 5.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, rising 20.0%.
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 238% on a 1 Year basis vis-vis a return of 80% 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 3.01 times its book value
-Debtor days have increased from 30.99 to 45.46 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -17.08%
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 36.92 and is trading at 24.4. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
