Mehabe score: 1 G Factor: 3 Piotski Score: 2 The stock has a rating SELL. 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 2. Site:SURYODAY Main Symbol:SURYODAY
Stock trades at 141.0, below its 50dma 149.1 and below its 200dma 184.62. The stock remains bearish on technicals
The 52 week high is at 296.35 and the 52week low is at 136.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.93 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 28.02%
– has a low return on equity of 7.07% for last 3 years.
-Promoters have pledged 37.97% of their holding.
-Earnings include an other income of Rs.108.15 Cr.
Competition
– The industry trades at a mean P/E of 16.7x. Kotak Mah. Bank trades at the industry’s max P/E of 35.11x. SURYODAY trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. SURYODAY has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 7.3%. The max 1- month return was given by Bandhan Bank: a return of 27.38 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 255.04 cr compared to Rs 203.57 cr for period ended Dec 2020, a rise of 25.3% .
vis-vis 139.1 for period ended Dec 2020 .
Operating Margins expanded 129.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 177.57 cr for period ended Dec 2021 and operating profit margin at 69.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.44 compared to Rs 0.0 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 857.0 cr for period ended TTM vis-vis sales of Rs 776.0 cr for the period ended Mar 2021, a growth of 9.5%. The 3 year sales cagr stood at 17.4%.
Operating margins shrank to -230.0% for period ended TTM vis-vis -72.0% for period ended Mar 2021, contraction of 15800.0 bps.
Net Profit reported at Rs -88.0 cr for period ended TTM vis-vis sales of Rs 12.0 cr for the period ended Mar 2021, 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 1.0% compared to 7.0% over the last 3 Years. – The stock has given a return of % 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 39% over the last 3 Years. – The compounded profit growth on a TTM basis is -323% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 9.95% vis-vis 9.96% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 37.62% vis-vis 37.38% for Sep 2021
Conclusion
– Stock is trading at 0.93 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 28.02%
– has a low return on equity of 7.07% for last 3 years.
-Promoters have pledged 37.97% of their holding.
-Earnings include an other income of Rs.108.15 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 149.1 and is trading at 141.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
