Mehabe score: 3 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
Pradhin is engaged in the business of Milk Products. Site:PRADHIN Main Symbol:PRADHIN
Stock trades at 72.5, above its 50dma 54.79. It also trades above its 200dma 44.85. The stock remains bullish on techicals
The 52 week high is at 75.60 and the 52week low is at 22.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 4.51 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.64% over past five years.
-Promoter holding is low: 14.71%
– has a low return on equity of -7.51% for last 3 years.
Competition
– The industry trades at a mean P/E of 43.1x. Adani Enterp. trades at the industry’s max P/E of 174.62x. PRADHIN trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. PRADHIN has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 4.9%. The max 1- month return was given by Pradhin: a return of 36.66 %
Quarterly Results
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Company reported negative operating profit of Rs -0.44 cr for period ended Dec 2021. For same period last year, operating profit was -0.05.
The EPS for quarter ended Dec 2021 is Rs 1.53 compared to Rs 0.16 for previous quarter ended Sep 2021 and Rs -0.11 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 41.18 cr for period ended TTM vis-vis sales of Rs 23.96 cr for the period ended Mar 2021, a healthy growth of 41.8%. The 3 year sales cagr stood at 7.9%.
Operating margins shrank to -1.41% for period ended TTM vis-vis -1.04% for period ended Mar 2021, contraction of 37.0 bps.
Net Profit reported at Rs 0.35 cr for period ended TTM vis-vis sales of Rs -0.23 cr for the period ended Mar 2021, 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 -4.0% compared to -8.0% over the last 3 Years. – The stock has given a return of 190% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 581% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -67% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 85.29% vis-vis 85.29% for Jun 2021
Conclusion
– is almost debt free. – Stock is trading at 4.51 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.64% over past five years.
-Promoter holding is low: 14.71%
– has a low return on equity of -7.51% for last 3 years.
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 54.79 and is trading at 72.5 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
