Mehabe score: 1 G Factor: 1 Piotski Score: 6 The stock has a rating SELL. 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
Sejal Glass is engaged in the business of manufacture of Value Added Glass in various forms viz. Tempering, Designing, Insulating and Laminated Glass.Site:SEZALMain Symbol:SEZAL
Stock trades at 3.87, below its 50dma 4.64. However it is trading above its 200dma 3.48. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 4.64.
The 52 week high is at 7.35 and the 52week low is at 1.60
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.68% over past five years.
-Contingent liabilities of Rs.106.59 Cr.
-Promoters have pledged 27.73% of their holding.
– has high debtors of 154.09 days.
Competition
– The industry trades at a mean P/E of 46.5x. Saint-Gob. Sekur trades at the industry’s max P/E of 88.33x. SEZAL trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. SEZAL has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 5.8%. The max 1- month return was given by Empire Inds.: a return of 11.76 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 4.03 cr compared to Rs 1.97 cr for period ended Mar 2020, a rise of 104.6%
Company reported negative operating profit of Rs -0.44 cr for period ended Mar 2021. For same period last year, operating profit was -4.07
The EPS for Mar 2021 was Rs -0.76 compared to Rs -1.49 for previous quarter ended Dec 2020 and Rs -1.56 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, a healthy growth of 60.0%.
Operating margins shrank to -126.0% for period ended Mar 2021 vis-vis -115.0% for period ended Mar 2020, contraction of 1100.0 bps.
Net Profit reported at Rs -18.0 cr for period ended Mar 2021 vis-vis sales of Rs -22.0 cr for the period ended Mar 2020, 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 stock has given a return of 49% 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 169% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -109% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 49.83% vis-vis 49.57% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.68% over past five years.
-Contingent liabilities of Rs.106.59 Cr.
-Promoters have pledged 27.73% of their holding.
– has high debtors of 154.09 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 4.64 and is trading at 3.87. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
