Mehabe score: 7 G Factor: 5 Piotski Score: 8 The stock has a rating . 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 5 and Piotski score of 8.
Description
Sportking India Limited, a part of the Sportking Group, is a textile manufacturing company engaged in the production of Yarns (Cotton Yarn, Synthetic Yarn, Blended Yarn), fabrics and garments. [1][2] Site:SPORTKING Main Symbol:SPORTKING
Stock trades at 1428.0, above its 50dma 1397.48. It also trades above its 200dma 1055.66. The stock remains bullish on techicals
The 52 week high is at 2046.95 and the 52week low is at 178.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 54.37% CAGR over last 5 years
Weakness
– Stock is trading at 3.48 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.76% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 9.2x. Sangam India trades at the industry’s max P/E of 20.28x. SPORTKING trades at a P/E of 6.82x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. SPORTKING has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 14.8%. The max 1- month return was given by Sangam India: a return of 37.94 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 587.0 cr compared to Rs 351.0 cr for period ended Dec 2020, a rise of 67.2% .
vis-vis 60.0 for period ended Dec 2020 .
Operating Margins expanded 1067.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 163.0 cr for period ended Dec 2021 and operating profit margin at 27.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 87.4 compared to Rs 82.91 for previous quarter ended Sep 2021 and Rs 21.36 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1974.0 cr for period ended TTM vis-vis sales of Rs 1305.0 cr for the period ended Mar 2021, a healthy growth of 33.9%. The 3 year sales cagr stood at 19.4%.
Operating margins expanded to 28.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, expansion of 1200.0 bps.
Net Profit reported at Rs 350.0 cr for period ended TTM vis-vis sales of Rs 85.0 cr for the period ended Mar 2021, rising 75.7%.
Company recorded a healthy Net Profit CAGR of 144.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 42.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 632% on a 1 Year basis vis-vis a return of 108% over the last 3 Years. – The compounded sales growth on a TTM bassis is 44% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 1693% vis-vis a compounded profit growth of 74% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.22% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.89% vis-vis 25.73% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 54.37% CAGR over last 5 years – Stock is trading at 3.48 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.76% over past five years.
– might be capitalizing the interest cost
