Mehabe score: 5 G Factor: 4 Piotski Score: 7 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 7.
Description
Synergy Green Industries is engaged in the business of Windmill Parts and Other CI & SGI Castings. Site:SGIL Main Symbol:SGIL
Stock trades at 193.0, above its 50dma 183.03. It also trades above its 200dma 149.26. The stock remains bullish on techicals
The 52 week high is at 244.00 and the 52week low is at 80.85
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 8.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 10.78% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 19.9x. Sona BLW Precis. trades at the industry’s max P/E of 136.81x. SGIL trades at a P/E of 124.0x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. SGIL has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 0.5%. The max 1- month return was given by Electrost.Cast.: a return of 16.25 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 70.57 cr compared to Rs 63.5 cr for period ended Dec 2020, a rise of 11.1% .
vis-vis 8.98 for period ended Dec 2020 .
Operating Margins contracted -794.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 4.37 cr for period ended Dec 2021 and operating profit margin at 6.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs -0.76 compared to Rs 0.28 for previous quarter ended Sep 2021 and Rs 1.78 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 274.0 cr for period ended TTM vis-vis sales of Rs 198.0 cr for the period ended Mar 2021, a healthy growth of 27.7%. The 3 year sales cagr stood at 18.4%.
Operating margins shrank to 8.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, contraction of 400.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 4.0 cr for the period ended Mar 2021, falling 100.0%.
Company reported a poor Net Profit CAGR of -26.3% 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 stock has given a return of 85% on a 1 Year basis vis-vis a return of 32% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 25% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of -8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 9.88% vis-vis 9.88% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 14.12% vis-vis 14.12% for Sep 2021
Conclusion
– – Stock is trading at 8.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 10.78% for last 3 years.
-‘s cost of borrowing seems high
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 183.03 and is trading at 193.0, thus bullish price action wise.
