Mehabe score: 7 G Factor: 5 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 5 and Piotski score of 4.
Description
Prerna Infrabuild is engaged in the business of Residential Building. Site:PRERINFRA Main Symbol:PRERINFRA
Stock trades at 36.2, above its 50dma 31.18. It also trades above its 200dma 27.64. The stock remains bullish on techicals
The 52 week high is at 39.90 and the 52week low is at 15.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 39.78% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 10.42% over past five years.
– has a low return on equity of 5.88% for last 3 years.
Competition
– The industry trades at a mean P/E of 35.4x. Brigade Enterpr. trades at the industry’s max P/E of 112.94x. PRERINFRA trades at a P/E of 7.42x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. PRERINFRA has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 3.8%. The max 1- month return was given by Prerna Infra.: a return of 13.32 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 9.57 cr compared to Rs 1.75 cr for period ended Mar 2021, a rise of 446.9% .
vis-vis 0.04 for period ended Mar 2021 .
Operating Margins expanded 2258.4 bps for period ended Mar 2022 vis-vis Mar 2021.
Company reported operating profit of Rs 2.38 cr for period ended Mar 2022 and operating profit margin at 24.9 % for same period.
The EPS for quarter ended Mar 2022 is Rs 1.54 compared to Rs 0.93 for previous quarter ended Dec 2021 and Rs -0.09 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 23.18 cr for period ended Mar 2022 vis-vis sales of Rs 3.91 cr for the period ended Mar 2021, a healthy growth of 83.1%. The 3 year sales cagr stood at 14.6%.
Operating margins expanded to 32.27% for period ended Mar 2022 vis-vis 5.37% for period ended Mar 2021, expansion of 2690.0 bps.
Net Profit reported at Rs 5.87 cr for period ended Mar 2022 vis-vis sales of Rs -0.14 cr for the period ended Mar 2021, rising 102.4%.
Company recorded a healthy Net Profit CAGR of 130.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -1.54 cr for period ended Mar 2021
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 18.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 115% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is 493% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 4293% vis-vis a compounded profit growth of 130% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2022 public holding stood at 43.37% vis-vis 43.37% for Dec 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 39.78% CAGR over last 5 years – The company has delivered a poor sales growth of 10.42% over past five years.
– has a low return on equity of 5.88% 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 31.18 and is trading at 36.2 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
