Mehabe score: 2 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
Palm Jewels Limited was originally incorporated as Shilvi Jewels Private Limited on Sept-2005. It is engaged in the business of gold Jewellery based in Ahmedabad which essentially sells gold-based chains, bracelets and necklaces. They outsource the manufacturing of Jewels (Gold & Silver) to the workers based in Ahmedabad & Mumbai. Jewellery is widely sold throughout Gujarat only through B2B marketing and Direct/Outbound marketing strategy. [1] Site:PALMJEWELS Main Symbol:PALMJEWELS
Stock trades at 19.9, below its 50dma 19.96 and below its 200dma 30.61. The stock remains bearish on technicals
The 52 week high is at 84.45 and the 52week low is at 15.55
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 0.95% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 42.9x. Adani Enterp. trades at the industry’s max P/E of 176.86x. PALMJEWELS trades at a P/E of 66.6x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. PALMJEWELS has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Rain Industries: a return of 16.35 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 36.28 cr compared to Rs 29.05 cr for period ended Dec 2020, a rise of 24.9% .
vis-vis 1.07 for period ended Dec 2020 .
Operating Margins contracted -247.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.44 cr for period ended Dec 2021 and operating profit margin at 1.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.33 compared to Rs 0.0 for previous quarter ended Sep 2021 and Rs 0.81 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 136.0 cr for period ended TTM vis-vis sales of Rs 78.0 cr for the period ended Mar 2021, a healthy growth of 42.6%. The 3 year sales cagr stood at 47.9%.
Net Profit reported at Rs -0.0 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021,
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of -56% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 65% vis-vis a compounded sales growth of 54% over the last 3 Years. – The compounded profit growth on a TTM basis is 233% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 43.86% vis-vis 43.86% for Sep 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 0.95% for last 3 years.
– might be capitalizing the interest cost
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 below its 50 DMA 19.96 and is trading at 19.9. Shows a near term lack of buying interest.
