Mehabe score: 2 G Factor: 0 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 0 and Piotski score of 5.
Description
APPSIL was formed following the Hitachi’s acquisition of 80.1% stake in the global power grids business of ABB Ltd in Dec, 2018 & the subsequent divestment and transfer of global power grids business unit of ABB into a new JV, Hitachi ABB Power Grids Ltd (Hitachi – 80.1% & ABB – 19.99%) which was incorporated in Feb, 2019. Site:POWERINDIA Main Symbol:POWERINDIA
Stock trades at 3072.0, above its 50dma 2778.37. It also trades above its 200dma 2269.36. The stock remains bullish on techicals
The 52 week high is at 3430.00 and the 52week low is at 1265.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 13.27 times its book value
– has high debtors of 169.08 days.
Competition
– The industry trades at a mean P/E of 30.4x. A B B trades at the industry’s max P/E of 142.83x. POWERINDIA trades at a P/E of 104.0x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 7.0. POWERINDIA has a G-Factor of 0 and Piotski scoreof 5.
– Average 1 month return for industry is -1.8%. The max 1- month return was given by Hitachi Energy: a return of 25.88 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 1123.0 cr compared to Rs 1044.0 cr for period ended Dec 2020, a rise of 7.6% .
vis-vis 72.0 for period ended Dec 2020 .
Operating Margins contracted -137.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 62.0 cr for period ended Dec 2021 and operating profit margin at 5.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 14.55 compared to Rs 8.1 for previous quarter ended Sep 2021 and Rs 12.97 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3771.0 cr for period ended Dec 2021 vis-vis sales of Rs 3420.0 cr for the period ended Dec 2020, a growth of 9.3%.
Operating margins shrank to 6.0% for period ended Dec 2021 vis-vis 8.0% for period ended Dec 2020, contraction of 200.0 bps.
Net Profit reported at Rs 152.0 cr for period ended Dec 2021 vis-vis sales of Rs 100.0 cr for the period ended Dec 2020, rising 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 0% over the last 3 Years. – The stock has given a return of 134% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 501% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 4.96% vis-vis 4.71% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 18.45% vis-vis 18.36% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 13.27 times its book value
– has high debtors of 169.08 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 2778.37 and is trading at 3072.0 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
