Mehabe score: 6 G Factor: 6 Piotski Score: 6 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 6.
Description
Sri Lakshmi Saraswathi (Arni) is also engaged in generation of electricity from its windmills for its captive consumption.(Source : 201903 Annual Report Page No:47) Site:SLSTLQ Main Symbol:SLSTLQ
Stock trades at 70.0, above its 50dma 53.53. It also trades above its 200dma 32.47. The stock remains bullish on techicals
The 52 week high is at 78.80 and the 52week low is at 5.07
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -4.61% over past five years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 10.8x. Arvind Ltd trades at the industry’s max P/E of 17.4x. SLSTLQ trades at a P/E of 3.74x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. SLSTLQ has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 12.0%. The max 1- month return was given by Sri Lak.Sar.Arni: a return of 35.35 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 40.62 cr compared to Rs 26.16 cr for period ended Dec 2020, a rise of 55.3% .
vis-vis 1.13 for period ended Dec 2020 .
Operating Margins expanded 117.0 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 2.23 cr for period ended Dec 2021 and operating profit margin at 5.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.85 compared to Rs 3.15 for previous quarter ended Sep 2021 and Rs -0.3 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 141.0 cr for period ended TTM vis-vis sales of Rs 86.0 cr for the period ended Mar 2021, a healthy growth of 39.0%. The 3 year sales cagr stood at 8.0%.
Operating margins expanded to 8.0% for period ended TTM vis-vis 3.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 7.0 cr for period ended TTM vis-vis sales of Rs -1.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.0 cr for period ended Mar 2021 vis-vis Rs -1.0 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 989% on a 1 Year basis vis-vis a return of 83% over the last 3 Years. – The compounded sales growth on a TTM bassis is 82% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 155% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 44.91% vis-vis 44.91% for Sep 2021
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of -4.61% over past five 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 53.53 and is trading at 70.0, thus bullish price action wise.
