Mehabe score: 4 G Factor: 2 Piotski Score: 2 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 2 and Piotski score of 2.
Description
Sintercom India is engaged in manufacturing of sintered metal components and auto components. Site:SINTERCOM Main Symbol:SINTERCOM
Stock trades at 95.0, above its 50dma 93.44. It also trades above its 200dma 86.36. The stock remains bullish on techicals
The 52 week high is at 108.00 and the 52week low is at 61.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
– has a low return on equity of -0.77% for last 3 years.
– has high debtors of 163.55 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 25.1x. WABCO India trades at the industry’s max P/E of 109.65x. SINTERCOM trades at a P/E of x
– Industry’s mean G-Factor is 1.6 while the mean Piotski score is 7.0. SINTERCOM has a G-Factor of 2 and Piotski scoreof 2.
– Average 1 month return for industry is -8.0%. The max 1- month return was given by Sintercom India: a return of -0.05 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 15.14 cr compared to Rs 15.42 cr for period ended Dec 2020, a fall of 1.8%
.
vis-vis 1.96 for period ended Dec 2020 .
Operating Margins contracted -445.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1.25 cr for period ended Dec 2021 and operating profit margin at 8.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs -0.55 compared to Rs -0.38 for previous quarter ended Sep 2021 and Rs -0.21 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 58.32 cr for period ended TTM vis-vis sales of Rs 47.2 cr for the period ended Mar 2021, a healthy growth of 19.1%. The 3 year sales cagr stood at -11.0%.
Operating margins expanded to 8.83% for period ended TTM vis-vis 8.47% for period ended Mar 2021, expansion of 36.0 bps.
Net Profit reported at Rs -3.52 cr for period ended TTM vis-vis sales of Rs -4.7 cr for the period ended Mar 2021, 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -5.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 5% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 46% vis-vis a compounded sales growth of -14% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is expected to give good quarter – has low interest coverage ratio.
– has a low return on equity of -0.77% for last 3 years.
– has high debtors of 163.55 days.
-‘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 93.44 and is trading at 95.0 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
