Mehabe score: 2 G Factor: 4 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 4 and Piotski score of 6.
Description
Supreme Engineering is engaged in the manufacturing and processing of stainless steels wires & bars.Site:SUPREMEENG
Market Cap:
Rs 97.7 cr
Price:
39.1
Trading pe:
22.9x
Book-value:
21.5/share
Div yield:
0.00 %
Earning yield:
8.54%
Face-value:
10.0/share
52week high:
42.90
52week low:
14.85
Technical Analysis
Stock trades at 39.1, above its 50dma 33.83. It also trades above its 200dma 27.72. The stock remains bullish on techicals
The 52 week high is at 42.90 and the 52week low is at 14.85
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
– has a low return on equity of 13.69% for last 3 years.
– has high debtors of 208.09 days.
Competition
– The industry trades at a mean P/E of 14.7x. Apollo Tricoat trades at the industry’s max P/E of 44.87x. SUPREMEENG trades at a P/E of 22.9x
– Industry’s mean G-Factor is 5.2 while the mean Piotski score is 8.0. SUPREMEENG has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 13.4%. The max 1- month return was given by Godawari Power: a return of 41.69 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 27.59 cr compared to Rs 20.21 cr for period ended Dec 2019, a rise of 36.5%
Company reported operating profit of Rs 5.35 cr for period ended Mar 2021, operating profit margin at 19.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 1.8 compared to Rs -0.9 for previous quarter ended Dec 2020 and Rs -3.1 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 69.99 cr for period ended Mar 2021 vis-vis sales of Rs 166.9 cr for the period ended Mar 2020, a fall of 138.5%. The 3 year sales cagr stood at -22.7%.
Operating margins shrank to 8.8% for period ended Mar 2021 vis-vis 9.77% for period ended Mar 2020, contraction of 97.0 bps.
Net Profit reported at Rs -2.95 cr for period ended Mar 2021 vis-vis sales of Rs 4.25 cr for the period ended Mar 2020, falling 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 8.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 118% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -35% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Conclusion
– – has low interest coverage ratio.
– has a low return on equity of 13.69% for last 3 years.
– has high debtors of 208.09 days.
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 33.83 and is trading at 39.1, thus bullish price action wise.
