Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 4.
Description
Tirupati Forge is engaged in business of manufacturing of Carbon Steel Forged Flanges, Forged Components and other automotive components. Site:TIRUPATIFL Main Symbol:TIRUPATIFL
Stock trades at 11.8, below its 50dma 12.2. However it is trading above its 200dma 9.48. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 12.2.
The 52 week high is at 17.05 and the 52week low is at 2.71
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 5.29 times its book value
-The company has delivered a poor sales growth of 11.36% over past five years.
– has a low return on equity of 10.04% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 47.02% of their holding.
-Promoter holding has decreased over last 3 years: -9.37%
Competition
– The industry trades at a mean P/E of 24.3x. Sona BLW Precis. trades at the industry’s max P/E of 132.73x. TIRUPATIFL trades at a P/E of 90.7x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. TIRUPATIFL has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -2.1%. The max 1- month return was given by Electrost.Cast.: a return of 17.33 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 27.5 cr compared to Rs 7.28 cr for period ended Dec 2020, a rise of 277.7% .
vis-vis 0.64 for period ended Dec 2020 .
Operating Margins expanded 920.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 4.95 cr for period ended Dec 2021 and operating profit margin at 18.0 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.31 compared to Rs 0.05 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 70.25 cr for period ended TTM vis-vis sales of Rs 30.77 cr for the period ended Mar 2021, a healthy growth of 56.2%. The 3 year sales cagr stood at 18.9%.
Operating margins expanded to 11.69% for period ended TTM vis-vis 8.71% for period ended Mar 2021, expansion of 298.0 bps.
Net Profit reported at Rs 4.31 cr for period ended TTM vis-vis sales of Rs 0.39 cr for the period ended Mar 2021, rising 91.0%.
Company recorded a Net Profit CAGR of 0.9% 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 10.0% over the last 3 Years. – The stock has given a return of 296% on a 1 Year basis vis-vis a return of 57% over the last 3 Years. – The compounded sales growth on a TTM bassis is 91% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 606% vis-vis a compounded profit growth of -38% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter – Stock is trading at 5.29 times its book value
-The company has delivered a poor sales growth of 11.36% over past five years.
– has a low return on equity of 10.04% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 47.02% of their holding.
-Promoter holding has decreased over last 3 years: -9.37%
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 12.2 and is trading at 11.8. 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
