Mehabe score: 2 G Factor: 3 Piotski Score: 8 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 8.
Description
Swasti Vinayaka Art & Heritage Corp. is engaged interalia, in the business of manufacturing of Carvings of Precious and semi precious stones, paintings, jewellery, the company also received compensation against property. Site:SVARTCORP Main Symbol:SVARTCORP
Stock trades at 8.3, below its 50dma 158.71 and below its 200dma 143.72. The stock remains bearish on technicals
The 52 week high is at 207.45 and the 52week low is at 120.10
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -1.40% over past five years.
– has a low return on equity of 11.58% for last 3 years.
-Debtor days have increased from 31.35 to 58.04 days.
Competition
– The industry trades at a mean P/E of 28.6x. Indian Energy Ex trades at the industry’s max P/E of 90.24x. SVARTCORP trades at a P/E of 17.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. SVARTCORP has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 9.2%. The max 1- month return was given by Swasti Vin. Art: a return of 82.82 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 2.9 cr compared to Rs 2.28 cr for period ended Dec 2020, a rise of 27.2% .
vis-vis 0.95 for period ended Dec 2020 .
Operating Margins contracted -890.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.95 cr for period ended Dec 2021 and operating profit margin at 32.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.14 compared to Rs 0.03 for previous quarter ended Sep 2021 and Rs 0.14 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 10.12 cr for period ended TTM vis-vis sales of Rs 8.49 cr for the period ended Mar 2021, a healthy growth of 16.1%. The 3 year sales cagr stood at 3.7%.
Operating margins shrank to 33.0% for period ended TTM vis-vis 39.46% for period ended Mar 2021, contraction of 646.0 bps.
Net Profit reported at Rs 1.89 cr for period ended TTM vis-vis sales of Rs 1.78 cr for the period ended Mar 2021, rising 5.8%.
Company recorded a Net Profit CAGR of 8.0% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 77% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is 194% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 49.0% vis-vis 49.0% for Jun 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -1.40% over past five years.
– has a low return on equity of 11.58% for last 3 years.
-Debtor days have increased from 31.35 to 58.04 days.
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 158.71 and is trading at 8.3. 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
