Mehabe score: 8 G Factor: 4 Piotski Score: 4 The stock has a rating OBSERVE & 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 4.
Description
Tiger Logistics (India) is a third-party logistics services provider. Its business covers international freight forwarding, supply chain management, project logistics defense logistics and cold chain logistics. Company is also customs house agent.(Source : 201903 Annual Report Page No:60) Site:TIGERLOGS Main Symbol:TIGERLOGS
Stock trades at 228.0, above its 50dma 173.19. It also trades above its 200dma 116.52. The stock remains bullish on techicals
The 52 week high is at 239.90 and the 52week low is at 33.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Stock is trading at 4.40 times its book value
-The company has delivered a poor sales growth of -7.91% over past five years.
– has a low return on equity of -10.30% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 25.2x. Mahindra Logis. trades at the industry’s max P/E of 103.59x. TIGERLOGS trades at a P/E of 13.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. TIGERLOGS has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 16.3%. The max 1- month return was given by Tiger Logistics: a return of 50.93 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 191.91 cr compared to Rs 47.56 cr for period ended Dec 2020, a rise of 303.5% .
vis-vis 2.34 for period ended Dec 2020 .
Operating Margins expanded 74.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 10.88 cr for period ended Dec 2021 and operating profit margin at 5.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 9.35 compared to Rs 8.07 for previous quarter ended Sep 2021 and Rs 1.19 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 509.0 cr for period ended TTM vis-vis sales of Rs 168.0 cr for the period ended Mar 2021, a healthy growth of 67.0%. The 3 year sales cagr stood at 15.5%.
Operating margins expanded to 5.0% for period ended TTM vis-vis -6.0% for period ended Mar 2021, expansion of 1100.0 bps.
Net Profit reported at Rs 26.0 cr for period ended TTM vis-vis sales of Rs -12.0 cr for the period ended Mar 2021, rising 146.2%.
Company recorded a healthy Net Profit CAGR of 63.0% 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 26.0 cr for period ended Mar 2021 vis-vis Rs 2.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -24.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 518% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 75% vis-vis a compounded sales growth of -20% over the last 3 Years. – The compounded profit growth on a TTM basis is 162% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 26.29% vis-vis 26.29% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Stock is trading at 4.40 times its book value
-The company has delivered a poor sales growth of -7.91% over past five years.
– has a low return on equity of -10.30% for last 3 years.
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 173.19 and is trading at 228.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
