Mehabe score: 1 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 Synthetics is engaged interalia, in the business of manufacturing of wide range of shirting fabrics comprising of cotton, linen, lycra, polyester, viscose and their blends. Site:SWASTIVI Main Symbol:SWASTIVI
Stock trades at 13.7, 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
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 7.76 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.37% over past five years.
– has high debtors of 175.72 days.
Competition
– The industry trades at a mean P/E of 9.4x. Swasti Vinayaka trades at the industry’s max P/E of 62.09x. SWASTIVI trades at a P/E of 62.1x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. SWASTIVI has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 24.7%. The max 1- month return was given by Swasti Vinayaka: a return of 102.51 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 5.01 cr compared to Rs 5.02 cr for period ended Dec 2020, a fall of 0.2%
.
vis-vis 0.47 for period ended Dec 2020 .
Operating Margins contracted -97.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.42 cr for period ended Dec 2021 and operating profit margin at 8.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.03 compared to Rs 0.06 for previous quarter ended Sep 2021 and Rs 0.04 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.65 cr for period ended TTM vis-vis sales of Rs 14.27 cr for the period ended Mar 2021, a healthy growth of 23.5%. The 3 year sales cagr stood at -0.7%.
Operating margins shrank to 15.87% for period ended TTM vis-vis 19.48% for period ended Mar 2021, contraction of 361.0 bps.
Net Profit reported at Rs 1.97 cr for period ended TTM vis-vis sales of Rs 1.54 cr for the period ended Mar 2021, rising 21.8%.
Company reported a poor Net Profit CAGR of -7.9% over the last 3 years
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 stock has given a return of -2% on a 1 Year basis vis-vis a return of 84% over the last 3 Years. – The compounded sales growth on a TTM bassis is 15% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is 140% vis-vis a compounded profit growth of -9% 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
– has reduced debt.
– is almost debt free. – Stock is trading at 7.76 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -2.37% over past five years.
– has high debtors of 175.72 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 13.7. 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
