Mehabe score: 5 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
Description
S E Power Ltd is engaged in the business of Generation of Energy through Non-Conventional Sources Manufacturing of Reclaimed Rubber. Site:SEPOWER Main Symbol:SEPOWER
Stock trades at 26.8, above its 50dma 25.27. It also trades above its 200dma 20.67. The stock remains bullish on techicals
The 52 week high is at 63.80 and the 52week low is at 3.37
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 11.67 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 35.60%
– has a low return on equity of -33.11% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 21.8x. Indag Rubber trades at the industry’s max P/E of 56.48x. SEPOWER trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. SEPOWER has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 10.2%. The max 1- month return was given by Pix Transmission: a return of 19.71 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 12.52 cr compared to Rs 7.91 cr for period ended Dec 2020, a rise of 58.3% .
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Company reported operating profit of Rs 0.61 cr for period ended Dec 2021 and operating profit margin at 4.9 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Dec 2021 is Rs -0.23 compared to Rs -0.1 for previous quarter ended Sep 2021 and Rs -0.46 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.43 cr for period ended TTM vis-vis sales of Rs 23.69 cr for the period ended Mar 2021, a healthy growth of 46.7%. The 3 year sales cagr stood at 34.2%.
Operating margins expanded to 6.3% for period ended TTM vis-vis -1.94% for period ended Mar 2021, expansion of 824.0 bps.
Net Profit reported at Rs -5.49 cr for period ended TTM vis-vis sales of Rs -7.33 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -47.0% compared to -33.0% over the last 3 Years. – The stock has given a return of 603% on a 1 Year basis vis-vis a return of 88% over the last 3 Years. – The compounded sales growth on a TTM bassis is 120% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2022 fii holding stood at 12.21% vis-vis 12.21% for Dec 2021 – Public shareholding has remained largely constant. The Mar 2022 public holding stood at 52.19% vis-vis 52.19% for Dec 2021
Conclusion
– is expected to give good quarter – Stock is trading at 11.67 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 35.60%
– has a low return on equity of -33.11% for last 3 years.
– might be capitalizing the interest cost
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 25.27 and is trading at 26.8, thus bullish price action wise.
