Mehabe score: 2 G Factor: 3 Piotski Score: 4 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 4.
Description
Shekhawati Poly-Yarn is principally engaged in the manufacturing of Texturising Yarn, Twisting Yarn and Knitted Fabrics. The Company caters to both domestic and international markets.(Source : 201903 Annual Report Page No:86)Site:SPYL
Market Cap:
Rs 24.1 cr
Price:
0.7
Trading pe:
x
Book-value:
-2.60/share
Div yield:
0.00 %
Earning yield:
-15.93%
Face-value:
1.00/share
52week high:
0.75
52week low:
0.25
Technical Analysis
Stock trades at 0.7, above its 50dma 0.5. It also trades above its 200dma 0.41. The stock remains bullish on techicals
The 52 week high is at 0.75 and the 52week low is at 0.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -33.78% over past five years.
-Promoters have pledged 28.46% of their holding.
-Debtor days have increased from 24.21 to 36.89 days.
Competition
– The industry trades at a mean P/E of 18.2x. Alok Industries trades at the industry’s max P/E of 410.9x. SPYL trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. SPYL has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 17.7%. The max 1- month return was given by Vishal Fabrics: a return of 53.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 12.27 cr compared to Rs 25.23 cr for period ended Mar 2020, a fall of 51.4%
Company reported operating profit of Rs 1.66 cr for period ended Mar 2021, operating profit margin at 13.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 29.0 cr for period ended Mar 2021 vis-vis sales of Rs 163.0 cr for the period ended Mar 2020, a fall of 462.1%. The 3 year sales cagr stood at -41.4%.
Operating margins shrank to -10.0% for period ended Mar 2021 vis-vis -7.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs -11.0 cr for period ended Mar 2021 vis-vis sales of Rs -21.0 cr for the period ended Mar 2020, 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 stock has given a return of 100% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is -82% vis-vis a compounded sales growth of -42% over the last 3 Years. – The compounded profit growth on a TTM basis is 46% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 42.51% vis-vis 42.51% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -33.78% over past five years.
-Promoters have pledged 28.46% of their holding.
-Debtor days have increased from 24.21 to 36.89 days.
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 0.5 and is trading at 0.7 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
