Mehabe score: 6 G Factor: 4 Piotski Score: 7 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 7.
Description
Surana Telecom & Power is engaged in the business of Generation of solar and wind energy and Trading of solar modules.Site:SURANAT&PMain Symbol:SURANAT&P
Stock trades at 7.3, above its 50dma 6.5. It also trades above its 200dma 5.28. The stock remains bullish on techicals
The 52 week high is at 8.38 and the 52week low is at 3.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.90 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.91% over past five years.
– has a low return on equity of 3.81% for last 3 years.
-Debtor days have increased from 69.36 to 92.17 days.
Competition
– The industry trades at a mean P/E of 25.9x. Andrew Yule & Co trades at the industry’s max P/E of 39.88x. SURANAT&P trades at a P/E of 26.9x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. SURANAT&P has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -3.2%. The max 1- month return was given by Andhra Sugars: a return of 2.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 8.18 cr compared to Rs 8.03 cr for period ended Mar 2020, a rise of 1.9%
Operating Profits reported at Rs 4.52 cr for period ended Mar 2021 vis-vis 3.74 for period ended Mar 2020 .
Operating Margins expanded 868.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.05 compared to Rs 0.08 for previous quarter ended Dec 2020 and Rs 0.04 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 29.62 cr for period ended Mar 2021 vis-vis sales of Rs 29.23 cr for the period ended Mar 2020, a growth of 1.3%. The 3 year sales cagr stood at -5.7%.
Operating margins expanded to 63.64% for period ended Mar 2021 vis-vis 61.0% for period ended Mar 2020, expansion of 264.0 bps.
Net Profit reported at Rs 3.69 cr for period ended Mar 2021 vis-vis sales of Rs 6.92 cr for the period ended Mar 2020, falling 87.5%.
Company recorded a healthy Net Profit CAGR of 25.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 20.04 cr for period ended Mar 2021 vis-vis Rs 12.17 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 103% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of 39% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 24.95% vis-vis 24.95% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.90 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 2.91% over past five years.
– has a low return on equity of 3.81% for last 3 years.
-Debtor days have increased from 69.36 to 92.17 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 6.5 and is trading at 7.3, thus bullish price action wise.
