Mehabe score: 2 G Factor: 0 Piotski Score: 2 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 2.
Description
Raw Edge Industrial Solutions is engaged in the business of Trading & Manufacturing of minerals and also in providing service of transportation. The company caters to domestic market only. Site:RAWEDGE Main Symbol:RAWEDGE
Stock trades at 41.4, above its 50dma 35.54. It also trades above its 200dma 35.62. The stock remains bullish on techicals
The 52 week high is at 55.83 and the 52week low is at 21.05
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
– has a low return on equity of 4.73% for last 3 years.
– has high debtors of 188.71 days.
Competition
– The industry trades at a mean P/E of 36.7x. Adani Enterp. trades at the industry’s max P/E of 238.42x. RAWEDGE trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 8.0. RAWEDGE has a G-Factor of 0 and Piotski scoreof 2.
– Average 1 month return for industry is -3.1%. The max 1- month return was given by Raw Edge Indust.: a return of 30.98 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 13.53 cr compared to Rs 13.45 cr for period ended Dec 2020, a rise of 0.6% .
vis-vis 1.71 for period ended Dec 2020 .
Operating Margins contracted -554.5 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.97 cr for period ended Dec 2021 and operating profit margin at 7.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.12 compared to Rs -0.24 for previous quarter ended Sep 2021 and Rs 0.69 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.64 cr for period ended TTM vis-vis sales of Rs 44.08 cr for the period ended Mar 2021, a growth of 1.3%. The 3 year sales cagr stood at -9.3%.
Operating margins shrank to 4.61% for period ended TTM vis-vis 8.26% for period ended Mar 2021, contraction of 365.0 bps.
Net Profit reported at Rs -2.85 cr for period ended TTM vis-vis sales of Rs -0.42 cr for the period ended Mar 2021, falling 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -2.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 1% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -136% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 27.33% vis-vis 27.33% for Sep 2021
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of 4.73% for last 3 years.
– has high debtors of 188.71 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 35.54 and is trading at 41.4 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
