Mehabe score: 5 G Factor: 6 Piotski Score: 3 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 6 and Piotski score of 3.
Description
Silgo Retail is engaged in business of manufacturing & trading of Silver Jewellery and related business.Site:SILGOMain Symbol:www.nseindia.com
Stock trades at 36.3, below its 50dma 40.5 and below its 200dma 39.17. The stock remains bearish on technicals
The 52 week high is at 66.70 and the 52week low is at 33.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 13.40% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 101.49 to 149.14 days.
Competition
– The industry trades at a mean P/E of 24.1x. Titan Company trades at the industry’s max P/E of 127.08x. SILGO trades at a P/E of 17.0x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. SILGO has a G-Factor of 6 and Piotski scoreof 3.
– Average 1 month return for industry is 4.8%. The max 1- month return was given by Goldiam Intl.: a return of 29.53 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 4.82 cr compared to Rs 5.13 cr for period ended Mar 2020, a fall of 6.0%
Operating Profits reported at Rs 0.84 cr for period ended Jun 2021 vis-vis 0.72 for period ended Mar 2020 .
Operating Margins expanded 339.2 bps for period ended Jun 2021 vis-vis Mar 2020 .
The EPS for Jun 2021 was Rs 0.41 compared to Rs 0.86 for previous quarter ended Mar 2021 and Rs 0.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 31.89 cr for period ended Mar 2021 vis-vis sales of Rs 28.4 cr for the period ended Mar 2020, a healthy growth of 10.9%. The 3 year sales cagr stood at 24.6%.
Operating margins expanded to 12.64% for period ended Mar 2021 vis-vis 11.83% for period ended Mar 2020, expansion of 81.0 bps.
Net Profit reported at Rs 2.2 cr for period ended Mar 2021 vis-vis sales of Rs 2.03 cr for the period ended Mar 2020, rising 7.7%.
Company recorded a healthy Net Profit CAGR of 32.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -14.06 cr for period ended Mar 2021 vis-vis Rs -14.1 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 16% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of 25% over the last 3 Years. – The compounded profit growth on a TTM basis is 9% vis-vis a compounded profit growth of 32% over the last 3 Years.
Ratios
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 13.40% for last 3 years.
– might be capitalizing the interest cost
-Debtor days have increased from 101.49 to 149.14 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 40.5 and is trading at 36.3. 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
