Mehabe score: 3 G Factor: 5 Piotski Score: 5 The stock has a rating 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 5.
Description
Renaissance Global is engaged in the manufacture of diamond studded Jewellery, trading of cut and polished diamonds and Retail trade of furniture.(Source : 201903 Annual Report Page No: 114)Site:RGLMain Symbol:RGL
Stock trades at 536.0, above its 50dma 509.17. It also trades above its 200dma 381.42. The stock remains bullish on techicals
The 52 week high is at 593.00 and the 52week low is at 203.50
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Promoter holding has decreased over last quarter: -2.96%
-The company has delivered a poor sales growth of 9.01% over past five years.
– has a low return on equity of 10.14% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 6.59% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 25.1x. Titan Company trades at the industry’s max P/E of 158.82x. RGL trades at a P/E of 23.8x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. RGL has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 1.9%. The max 1- month return was given by Goldiam Intl.: a return of 30.21 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 583.0 cr compared to Rs 448.0 cr for period ended Mar 2020, a rise of 30.1%
Operating Profits reported at Rs 33.0 cr for period ended Mar 2021 vis-vis 16.0 for period ended Mar 2020 .
Operating Margins expanded 208.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.04 compared to Rs 13.42 for previous quarter ended Dec 2020 and Rs 2.82 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2031.0 cr for period ended Mar 2021 vis-vis sales of Rs 2502.0 cr for the period ended Mar 2020, a fall of 23.2%. The 3 year sales cagr stood at 3.9%.
Operating margins shrank to 5.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 42.0 cr for period ended Mar 2021 vis-vis sales of Rs 88.0 cr for the period ended Mar 2020, falling 109.5%.
Company reported a poor Net Profit CAGR of -12.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 6.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 146% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -19% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.58% vis-vis 0.05% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 27.58% vis-vis 25.14% for Dec 2020
Conclusion
– – Promoter holding has decreased over last quarter: -2.96%
-The company has delivered a poor sales growth of 9.01% over past five years.
– has a low return on equity of 10.14% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 6.59% of profits over last 3 years
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 509.17 and is trading at 536.0, thus bullish price action wise.
