Mehabe score: 5 G Factor: 2 Piotski Score: 5 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 5.
Description
Patel Integrated Logistics is in the business of Logistics Services, offering unified logistics solution through the extensive infrastructure of Offices and Delivery destinations across all over the Country. The Company provides various services to their client through its different divisions and products.#
Main Points
Air Freight Business (91% of revenues)#
The company operates its air freight business through Patel Airfreight Domestic (PAF)
It is an IATA approved cargo agency offering transportation of high-density cargo by air and surface within India. It also offers import consolidation services.Site:PATINTLOGMain Symbol:PATINTLOG
Stock trades at 26.0, above its 50dma 25.03. It also trades above its 200dma 21.92. The stock remains bullish on techicals
The 52 week high is at 32.05 and the 52week low is at 13.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.58 times its book value
– has been maintaining a healthy dividend payout of 178.47%
-Promoter holding has increased by 6.61% over last quarter.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.13% over past five years.
– has a low return on equity of 2.59% for last 3 years.
-Earnings include an other income of Rs.5.05 Cr.
-Debtor days have increased from 99.31 to 123.66 days.
Competition
– The industry trades at a mean P/E of 32.1x. Snowman Logistic trades at the industry’s max P/E of 14662.0x. PATINTLOG trades at a P/E of 1354.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. PATINTLOG has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -2.2%. The max 1- month return was given by Allcargo Logist.: a return of 10.36 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 72.14 cr compared to Rs 82.79 cr for period ended Mar 2020, a fall of 12.9%
Operating Profits reported at Rs 3.09 cr for period ended Mar 2021 vis-vis 7.02 for period ended Mar 2020 .
Operating Margins contracted -419.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.38 compared to Rs 0.01 for previous quarter ended Dec 2020 and Rs 0.39 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 212.0 cr for period ended Mar 2021 vis-vis sales of Rs 347.0 cr for the period ended Mar 2020, a fall of 63.7%. The 3 year sales cagr stood at -20.6%.
Operating margins expanded to 2.0% for period ended Mar 2021 vis-vis 1.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 0.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.0 cr for period ended Mar 2021 vis-vis Rs -16.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 51% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -39% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is -98% vis-vis a compounded profit growth of -82% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 57.2% vis-vis 63.8% for Dec 2020
Conclusion
– Stock is trading at 0.58 times its book value
– has been maintaining a healthy dividend payout of 178.47%
-Promoter holding has increased by 6.61% over last quarter. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.13% over past five years.
– has a low return on equity of 2.59% for last 3 years.
-Earnings include an other income of Rs.5.05 Cr.
-Debtor days have increased from 99.31 to 123.66 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 25.03 and is trading at 26.0 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
