Mehabe score: 4 G Factor: 1 Piotski Score: 3 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 1 and Piotski score of 3.
Description
S.S. Infrastructure Dev. Consultants is engaged in the business of engineering consultants and structural engineers to build townships, markets and other buildings, residential and commercial complexes. Site:SSINFRA Main Symbol:SSINFRA
Stock trades at 12.8, above its 50dma 9.87. It also trades above its 200dma 9.74. The stock remains bullish on techicals
The 52 week high is at 12.85 and the 52week low is at 7.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.36 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 7.24% for last 3 years.
– has high debtors of 393.46 days.
Competition
– The industry trades at a mean P/E of 40.9x. National Standar trades at the industry’s max P/E of 1148.66x. SSINFRA trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. SSINFRA has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by S.S. Infra. Dev.: a return of 49.42 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 3.5 cr compared to Rs 7.6 cr for period ended Sep 2020, a fall of 53.9%
.
.
Company reported negative operating profit of Rs -3.42 cr for period ended Sep 2021. For same period last year, operating profit was 0.95.
The EPS for quarter ended Sep 2021 is Rs -2.39 compared to Rs 0.39 for previous quarter ended Jun 2021 and Rs 0.06 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 41.3 cr for period ended TTM vis-vis sales of Rs 22.7 cr for the period ended Mar 2021, a healthy growth of 45.0%. The 3 year sales cagr stood at 7.7%.
Operating margins shrank to 8.06% for period ended TTM vis-vis 16.96% for period ended Mar 2021, contraction of 890.0 bps.
Net Profit reported at Rs -2.21 cr for period ended TTM vis-vis sales of Rs 0.63 cr for the period ended Mar 2021, falling 0%.
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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 69% on a 1 Year basis vis-vis a return of -9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -20% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is -79% vis-vis a compounded profit growth of -51% over the last 3 Years.
Ratios
Conclusion
– Stock is trading at 0.36 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 7.24% for last 3 years.
– has high debtors of 393.46 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 9.87 and is trading at 12.8 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
