Mehabe score: 5 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & 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 3 and Piotski score of 5.
Description
Simbhaoli Sugars is engaged in sugar refining (Defeco Remelt Phosphotation and Ion Exchange technology), high value, niche products (specialty sugars) and clean energy (ethanol).Site:SIMBHALS
Market Cap:
Rs 134 cr
Price:
32.4
Trading pe:
x
Book-value:
-12.9/share
Div yield:
0.00 %
Earning yield:
15.11%
Face-value:
10.0/share
52week high:
30.97
52week low:
5.45
Technical Analysis
Stock trades at 32.4, above its 50dma 17.64. It also trades above its 200dma 10.86. The stock remains bullish on techicals
The 52 week high is at 30.97 and the 52week low is at 5.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-Promoters have pledged 30.13% of their holding.
-Earnings include an other income of Rs.22.42 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 16.6x. Sh.Renuka Sugar trades at the industry’s max P/E of 25.4x. SIMBHALS trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. SIMBHALS has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 48.3%. The max 1- month return was given by Sh.Renuka Sugar: a return of 149.84 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 427.0 cr compared to Rs 372.0 cr for period ended Mar 2020, a rise of 14.8%
Operating Profits reported at Rs 36.0 cr for period ended Mar 2021 vis-vis 22.0 for period ended Mar 2020 .
Operating Margins expanded 251.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.76 compared to Rs -0.49 for previous quarter ended Dec 2020 and Rs 3.93 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1267.0 cr for period ended TTM vis-vis sales of Rs 1062.0 cr for the period ended Mar 2020, a healthy growth of 16.2%. The 3 year sales cagr stood at 7.8%.
Operating margins shrank to 3.0% for period ended TTM vis-vis 4.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs -6.0 cr for period ended TTM vis-vis sales of Rs -34.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 110.0 cr for period ended Mar 2020 vis-vis Rs 48.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 360% on a 1 Year basis vis-vis a return of 49% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 20% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 46.66% vis-vis 46.66% for Dec 2020
Conclusion
– has reduced debt. – has low interest coverage ratio.
-Promoters have pledged 30.13% of their holding.
-Earnings include an other income of Rs.22.42 Cr.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 17.64 and is trading at 32.4 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
