Mehabe score: 4 G Factor: 6 Piotski Score: 5 The stock has a rating 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 6 and Piotski score of 5.
Description
VRL Logistics is engaged in logistics services dealing mainly in domestic transportation of goods. Other businesses include bus operations, transport of passengers by air, sale of power and sale of certified emission reductions (CER) units generated from operation of wind mills. The operations of the Company are spread all over the country through various branches and transshipment hubs.(Source : 202003-01 Annual Report Page No:132)Site:VRLLOGMain Symbol:VRLLOG
Stock trades at 316.0, above its 50dma 266.22. It also trades above its 200dma 228.35. The stock remains bullish on techicals
The 52 week high is at 319.30 and the 52week low is at 140.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 67.55%
-Promoter holding has increased by 1.54% over last quarter.
Weakness
– Stock is trading at 4.67 times its book value
-The company has delivered a poor sales growth of 0.46% over past five years.
– has a low return on equity of 12.40% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.1x. Snowman Logistic trades at the industry’s max P/E of 14662.0x. VRLLOG trades at a P/E of 61.9x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. VRLLOG has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is -1.2%. The max 1- month return was given by Allcargo Logist.: a return of 10.36 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 600.0 cr compared to Rs 498.0 cr for period ended Mar 2020, a rise of 20.5%
Operating Profits reported at Rs 96.0 cr for period ended Mar 2021 vis-vis 57.0 for period ended Mar 2020 .
Operating Margins expanded 455.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.21 compared to Rs 4.4 for previous quarter ended Dec 2020 and Rs 0.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1763.0 cr for period ended Mar 2021 vis-vis sales of Rs 2119.0 cr for the period ended Mar 2020, a fall of 20.2%. The 3 year sales cagr stood at -2.8%.
Net Profit reported at Rs 45.0 cr for period ended Mar 2021 vis-vis sales of Rs 90.0 cr for the period ended Mar 2020, falling 100.0%.
Company reported a poor Net Profit CAGR of -21.5% 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 271.0 cr for period ended Mar 2021 vis-vis Rs 257.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 98% on a 1 Year basis vis-vis a return of -4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -17% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% vis-vis a compounded profit growth of -21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.05% vis-vis 2.74% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 8.7% vis-vis 9.07% for Dec 2020
Conclusion
– has been maintaining a healthy dividend payout of 67.55%
-Promoter holding has increased by 1.54% over last quarter. – Stock is trading at 4.67 times its book value
-The company has delivered a poor sales growth of 0.46% over past five years.
– has a low return on equity of 12.40% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 266.22 and is trading at 316.0, thus bullish price action wise.
