Mehabe score: 6 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Suratwwala Business Group Limited (SBGL) is engaged in the development and maintenance of commercial and residential real estate projects in Pune.[1] Site:SBGLP Main Symbol:SBGLP
Stock trades at 180.0, above its 50dma 129.71. It also trades above its 200dma 75.11. The stock remains bullish on techicals
The 52 week high is at 200.00 and the 52week low is at 33.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 23.36% CAGR over last 5 years
Weakness
– Stock is trading at 11.54 times its book value
-The company has delivered a poor sales growth of -8.02% over past five years.
– has high debtors of 302.31 days.
Competition
– The industry trades at a mean P/E of 32.9x. Brigade Enterpr. trades at the industry’s max P/E of 420.92x. SBGLP trades at a P/E of 54.1x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. SBGLP has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 12.3%. The max 1- month return was given by Suratwwala Busi.: a return of 60.71 %
Quarterly Results
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Company reported operating profit of Rs 6.12 cr for period ended Dec 2021 and operating profit margin at 58.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.38 compared to Rs 0 for previous quarter ended Unnamed: 0.
The EPS for quarter ended Dec 2021 is Rs 2.38 compared to Rs 0 for previous quarter ended Unnamed: 0.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 12.75 cr for period ended Mar 2021 vis-vis sales of Rs 10.75 cr for the period ended Mar 2020, a healthy growth of 15.7%. The 3 year sales cagr stood at 5.6%.
Operating margins expanded to 87.92% for period ended Mar 2021 vis-vis 32.28% for period ended Mar 2020, expansion of 5564.0 bps.
Net Profit reported at Rs 6.2 cr for period ended Mar 2021 vis-vis sales of Rs 0.45 cr for the period ended Mar 2020, rising 92.7%.
Company recorded a healthy Net Profit CAGR of 29.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -6.8 cr for period ended Mar 2021 vis-vis Rs -11.57 cr for period ended Mar 2020
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 28.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 437% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 930% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 26.47% vis-vis 26.58% for Mar 2021
Conclusion
– has delivered good profit growth of 23.36% CAGR over last 5 years – Stock is trading at 11.54 times its book value
-The company has delivered a poor sales growth of -8.02% over past five years.
– has high debtors of 302.31 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 129.71 and is trading at 180.0 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
