Mehabe score: 4 G Factor: 2 Piotski Score: 6 The stock has a rating OBSERVE & 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 2 and Piotski score of 6.
Description
Pasari Spinning Mills is engaged in the business of Textile , Spinning, Weaving, Dying and Printing factories, conventional or modern using cotton, silk, wool, polyester fiber. Site:PASARI Main Symbol:PASARI
Stock trades at 8.2, above its 50dma 7.81. It also trades above its 200dma 4.82. The stock remains bullish on techicals
The 52 week high is at 13.72 and the 52week low is at 1.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Debtor days have increased from 33.75 to 43.31 days.
Competition
– The industry trades at a mean P/E of 10.3x. Pasari Spinning trades at the industry’s max P/E of 35.37x. PASARI trades at a P/E of 35.4x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. PASARI has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Ambika Cotton: a return of 38.03 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.17 cr compared to Rs 0.16 cr for period ended Dec 2020, a rise of 6.3% .
vis-vis 0.12 for period ended Dec 2020 .
Operating Margins expanded 147.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.13 cr for period ended Dec 2021 and operating profit margin at 76.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.07 compared to Rs 0.08 for previous quarter ended Sep 2021 and Rs 0.05 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.74 cr for period ended TTM vis-vis sales of Rs 0.59 cr for the period ended Mar 2021, a healthy growth of 20.3%. The 3 year sales cagr stood at 5.5%.
Operating margins shrank to 70.27% for period ended TTM vis-vis 71.19% for period ended Mar 2021, contraction of 92.0 bps.
Net Profit reported at Rs 0.32 cr for period ended TTM vis-vis sales of Rs 0.23 cr for the period ended Mar 2021, rising 28.1%.
Company recorded a Net Profit CAGR of 5.8% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 51.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 556% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 52% vis-vis a compounded profit growth of -13% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 46.51% vis-vis 46.51% for Sep 2021
Conclusion
– – Debtor days have increased from 33.75 to 43.31 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 7.81 and is trading at 8.2 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
