Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 4.
Description
Tirupati Forge is engaged in business of manufacturing of Carbon Steel Forged Flanges, Forged Components and other automotive components.Site:TIRUPATIFL
Market Cap:
Rs 33.6 cr
Price:
30.0
Trading pe:
124.0x
Book-value:
18.4/share
Div yield:
0.00 %
Earning yield:
2.40%
Face-value:
10.0/share
52week high:
38.35
52week low:
20.25
Technical Analysis
Stock trades at 30.0, above its 50dma 26.88. It also trades above its 200dma 26.66. The stock remains bullish on techicals
The 52 week high is at 38.35 and the 52week low is at 20.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoters have pledged 47.63% of their holding.
-Promoter holding has decreased over last 3 years: -10.12%
Competition
– The industry trades at a mean P/E of 45.7x. Bharat Forge trades at the industry’s max P/E of 456.12x. TIRUPATIFL trades at a P/E of 124.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. TIRUPATIFL has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 14.7%. The max 1- month return was given by Jayaswal Neco: a return of 35.44 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 11.61 cr compared to Rs 7.15 cr for period ended Mar 2020, a rise of 62.4%
Operating Profits reported at Rs 0.7 cr for period ended Mar 2021 vis-vis 0.58 for period ended Mar 2020 .
Operating Margins contracted -208.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.12 compared to Rs 0.03 for previous quarter ended Dec 2020 and Rs 0.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 30.77 cr for period ended Mar 2021 vis-vis sales of Rs 27.61 cr for the period ended Mar 2020, a healthy growth of 10.3%. The 3 year sales cagr stood at 13.9%.
Operating margins expanded to 8.71% for period ended Mar 2021 vis-vis 8.48% for period ended Mar 2020, expansion of 23.0 bps.
Net Profit reported at Rs 0.39 cr for period ended Mar 2021 vis-vis sales of Rs 0.27 cr for the period ended Mar 2020, rising 30.8%.
Company reported a poor Net Profit CAGR of -36.9% 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 4% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -34% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is -94% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoters have pledged 47.63% of their holding.
-Promoter holding has decreased over last 3 years: -10.12%
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 26.88 and is trading at 30.0 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
