Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 7.
Description
Vaibhav Global Limited (VGL), through its distinctive business model, has created a niche for itself in the global retail space, especially in the jewellery, accessories and lifestyle product segments of two of the largest economies of the world – the US and UK. [1] Site:VAIBHAVGBL Main Symbol:VAIBHAVGBL
Stock trades at 481.0, below its 50dma 564.53 and below its 200dma 631.37. The stock remains bearish on technicals
The 52 week high is at 1057.70 and the 52week low is at 474.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 47.54% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 27.74%
– has been maintaining a healthy dividend payout of 36.12%
Weakness
– Stock is trading at 7.37 times its book value
-Promoter holding has decreased over last 3 years: -6.01%
Competition
– The industry trades at a mean P/E of 36.9x. Titan Company trades at the industry’s max P/E of 119.92x. VAIBHAVGBL trades at a P/E of 27.2x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. VAIBHAVGBL has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -1.1%. The max 1- month return was given by Goldiam Intl.: a return of 9.69 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 750.0 cr compared to Rs 725.0 cr for period ended Dec 2020, a rise of 3.4% .
vis-vis 123.0 for period ended Dec 2020 .
Operating Margins contracted -563.2 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 85.0 cr for period ended Dec 2021 and operating profit margin at 11.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.24 compared to Rs 2.58 for previous quarter ended Sep 2021 and Rs 5.68 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2733.0 cr for period ended TTM vis-vis sales of Rs 2540.0 cr for the period ended Mar 2021, a growth of 7.1%. The 3 year sales cagr stood at 14.6%.
Operating margins shrank to 12.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 267.0 cr for period ended TTM vis-vis sales of Rs 272.0 cr for the period ended Mar 2021, falling 1.9%.
Company recorded a healthy Net Profit CAGR of 20.1% 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 326.0 cr for period ended Mar 2021 vis-vis Rs 214.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 32.0% compared to 28.0% over the last 3 Years. – The stock has given a return of -3% on a 1 Year basis vis-vis a return of 58% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 26% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 10.69% vis-vis 11.17% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 12.52% vis-vis 12.05% for Sep 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 47.54% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 27.74%
– has been maintaining a healthy dividend payout of 36.12% – Stock is trading at 7.37 times its book value
-Promoter holding has decreased over last 3 years: -6.01%
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 564.53 and is trading at 481.0. 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
