Mehabe score: 3 G Factor: 1 Piotski Score: 6 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 1 and Piotski score of 6.
Description
Vitesse Agro is engaged in Business of Trading of Sugar. Site:VITESSE Main Symbol:VITESSE
Stock trades at 125.0, above its 50dma 81.73. It also trades above its 200dma 53.7. The stock remains bullish on techicals
The 52 week high is at 124.75 and the 52week low is at 22.55
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 7.16 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -0.75%
– has a low return on equity of 13.32% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 33.8x. Adani Enterp. trades at the industry’s max P/E of 239.79x. VITESSE trades at a P/E of 75.2x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 8.0. VITESSE has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is -2.2%. The max 1- month return was given by Vitesse Agro: a return of 40.17 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 4.84 cr compared to Rs 11.19 cr for period ended Dec 2020, a fall of 56.7%
.
vis-vis 1.29 for period ended Dec 2020 .
Operating Margins contracted -264.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.43 cr for period ended Dec 2021 and operating profit margin at 8.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.64 compared to Rs 0.42 for previous quarter ended Sep 2021 and Rs 2.04 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.0 cr for period ended TTM vis-vis sales of Rs 20.0 cr for the period ended Mar 2021, a fall of 17.6%. The 3 year sales cagr stood at 163.4%.
Operating margins shrank to 6.88% for period ended TTM vis-vis 11.85% for period ended Mar 2021, contraction of 497.0 bps.
Net Profit reported at Rs 0.75 cr for period ended TTM vis-vis sales of Rs 1.5 cr for the period ended Mar 2021, falling 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 198% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 136% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% vis-vis a compounded profit growth of 322% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 31.55% vis-vis 30.8% for Sep 2021
Conclusion
– – Stock is trading at 7.16 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -0.75%
– has a low return on equity of 13.32% 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 81.73 and is trading at 125.0 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
