Mehabe score: 6 G Factor: 4 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 4 and Piotski score of 6.
Description
Navkar Corporation is engaged in providing Container Freight Station (CFS) facilities and Inland Container Depot (ICD) and is focused on capitalizing the available opportunities in the logistics space in western India. Site:NAVKARCORP Main Symbol:NAVKARCORP
Stock trades at 43.8, above its 50dma 43.25. It also trades above its 200dma 41.61. The stock remains bullish on techicals
The 52 week high is at 54.75 and the 52week low is at 30.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.37 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.16% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.3x. Indian Energy Ex trades at the industry’s max P/E of 69.89x. NAVKARCORP trades at a P/E of 14.1x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. NAVKARCORP has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -3.1%. The max 1- month return was given by BSE: a return of 6.91 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 218.0 cr compared to Rs 190.0 cr for period ended Dec 2020, a rise of 14.7% .
vis-vis 47.0 for period ended Dec 2020 .
Operating Margins contracted -226.0 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 49.0 cr for period ended Dec 2021 and operating profit margin at 22.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.83 compared to Rs 0.77 for previous quarter ended Sep 2021 and Rs 0.92 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 865.0 cr for period ended TTM vis-vis sales of Rs 672.0 cr for the period ended Mar 2021, a healthy growth of 22.3%. The 3 year sales cagr stood at 21.4%.
Operating margins expanded to 22.0% for period ended TTM vis-vis 21.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 45.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, rising 64.4%.
Company reported a poor Net Profit CAGR of -5.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 9% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 47% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 161% vis-vis a compounded profit growth of -45% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.4% vis-vis 0.35% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 24.33% vis-vis 24.38% for Sep 2021
Conclusion
– Stock is trading at 0.37 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.16% for last 3 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 43.25 and is trading at 43.8, thus bullish price action wise.
