Mehabe score: 3 G Factor: 3 Piotski Score: 3 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 3 and Piotski score of 3.
Description
Vikas Multicorp Limited is an India-based company that is a polymer and polymer related trading company. The Company is engaged in the business of trading of various chemicals compounds, polymers, poly vinyl chloride resins, plastic granules, items related to plastic industry. Site:VIKASLIFE Main Symbol:VIKASLIFE
Stock trades at 5.3, above its 50dma 3.76. It also trades above its 200dma 3.65. The stock remains bullish on techicals
The 52 week high is at 5.41 and the 52week low is at 2.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Stock is trading at 4.66 times its book value
-Promoter holding has decreased over last quarter: -5.28%
-The company has delivered a poor sales growth of -4.28% over past five years.
-Promoter holding is low: 14.81%
– has a low return on equity of 1.36% for last 3 years.
– has high debtors of 208.91 days.
Competition
– The industry trades at a mean P/E of 42.8x. Adani Enterp. trades at the industry’s max P/E of 167.22x. VIKASLIFE trades at a P/E of 40.8x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. VIKASLIFE has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 5.7%. The max 1- month return was given by Vikas Lifecare: a return of 51.43 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 106.74 cr compared to Rs 9.43 cr for period ended Dec 2020, a rise of 1031.9% .
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Company reported negative operating profit of Rs -3.13 cr for period ended Dec 2021. For same period last year, operating profit was -2.51.
The EPS for quarter ended Dec 2021 is Rs 0.03 compared to Rs 0.02 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 228.0 cr for period ended TTM vis-vis sales of Rs 75.0 cr for the period ended Mar 2021, a healthy growth of 67.1%. The 3 year sales cagr stood at 1.8%.
Operating margins shrank to 2.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, contraction of 800.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs -4.0 cr for the period ended Mar 2021, rising 300.0%.
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 7% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 191% vis-vis a compounded sales growth of -27% over the last 3 Years. – The compounded profit growth on a TTM basis is 7638% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.02% vis-vis 1.19% for Jun 2021 – Public shareholding has risen for the period ended Sep 2021. The Sep 2021 public holding stood at 85.17% vis-vis 78.7% for Jun 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Stock is trading at 4.66 times its book value
-Promoter holding has decreased over last quarter: -5.28%
-The company has delivered a poor sales growth of -4.28% over past five years.
-Promoter holding is low: 14.81%
– has a low return on equity of 1.36% for last 3 years.
– has high debtors of 208.91 days.
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 3.76 and is trading at 5.3 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
