Mehabe score: 7 G Factor: 6 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 6 and Piotski score of 7.
Description
Shiva Mills Ltd. primary engaged in Textile Industry.Site:SHIVAMILLSMain Symbol:SHIVAMILLS
Stock trades at 96.6, above its 50dma 87.46. It also trades above its 200dma 58.34. The stock remains bullish on techicals
The 52 week high is at 114.45 and the 52week low is at 19.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.92 times its book value
-Debtor days have improved from 47.53 to 27.82 days.
Weakness
– has a low return on equity of 6.54% for last 3 years.
Competition
– The industry trades at a mean P/E of 11.8x. Deepak Spinners trades at the industry’s max P/E of 15.73x. SHIVAMILLS trades at a P/E of 9.76x
– Industry’s mean G-Factor is 5.1 while the mean Piotski score is 8.0. SHIVAMILLS has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 25.1%. The max 1- month return was given by Sportking India: a return of 85.12 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 36.21 cr compared to Rs 9.33 cr for period ended Jun 2020, a rise of 288.1%
Company reported operating profit of Rs 6.74 cr for period ended Jun 2021, operating profit margin at 18.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 4.47 compared to Rs 5.89 for previous quarter ended Mar 2021 and Rs -2.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 166.0 cr for period ended TTM vis-vis sales of Rs 139.0 cr for the period ended Mar 2021, a healthy growth of 16.3%. The 3 year sales cagr stood at -1.7%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 15.0 cr for period ended TTM vis-vis sales of Rs 9.0 cr for the period ended Mar 2021, rising 40.0%.
Company recorded a healthy Net Profit CAGR of 28.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 43.0 cr for period ended Mar 2021 vis-vis Rs 16.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 314% on a 1 Year basis vis-vis a return of 21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 650% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.06% vis-vis 25.06% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.92 times its book value
-Debtor days have improved from 47.53 to 27.82 days. – has a low return on equity of 6.54% for 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 87.46 and is trading at 96.6, thus bullish price action wise.
